India’s Motherson Sumi Expands Internationally

Noida, India-based auto component maker Motherson Sumi Systems consolidated net profit stood at $108.81 million in the quarter ending March 31, 2017, a better-than-expected 20 percent growth. Motherson Sumi’s net sales outside India rose over 14 percent to 94.76 billion rupees (GB Please convert to USD)

CFO of Motherson Sumi Systems, G. N. Gauba told Press Trust of India, “We have earmarked $300 million capex for the current fiscal. The investment will mainly go into the upcoming nine manufacturing plants across the world.”  The company will set up three plants in India, three in Hungary, one each at South Korea, Mexico and the United States, he added.
Auto parts from Motherson Sumi Systems
Currently, the company operates over 180 facilities across the globe catering to various automobile OEMs including Mercedes- Benz, Audi, Toyota, Ford and Suzuki, reports the Economic Times. It has set a target of achieving a turnover of  $18 billion by 2020 through global expansion.

May 22, 2017   No Comments

India’s Gem, Jewelry Exports Surge

India’s gems and jewelry exports increased by 9  percent for financial year 2016-17 due to demand from the United States, Hong Kong and the United Arab Emirates, the three destinations accounting for over 75 percent of India’s overall shipment of precious ornaments by value.

India’s  Gems & Jewelry Export Promotion Council, said that net exports for the financial year 2016-2017 were $36 billion, while for the previous financial year, the number was  $32.6 billion. Praveenshankar Pandya, chairman of the Gems and Jewelry Export Council estimated exports to increase by a further 10 percent for the current financial year 2017-18.

Diamond pendant

Meanwhile, cut and polished diamonds contributed  60 percent of India’s overall exports of precious metals and stones, reports the Business Standard.

 

May 6, 2017   No Comments

Amazon Launches Fire TV in India

Amazon launched its Fire TV stick in India  with Amazon’s Prime Video India director and country head Nitesh Kripalani and Amazon Fire TV vice president Marc Whitten at the launch. India is the fifth country where the device becomes available after the U.S., U.K., Germany and Japan.

Priced at $62, the Fire Stick stick comes pre-loaded with  Amazon Prime Video and rival platforms, such as Netflix, Fox India’s Star network-owned Hotstar, Viacom18’s Voot and Indian film major Eros International’s ErosNow, among others. Additionally, the device offers access to YouTube, various gaming apps and more, says The Hollywood Reporter.

Amazon Fire TV Stick with Voice Remote

Amazon Fire TV Stick with Voice Remote

Whitten said, “Fire TV Stick also offers data monitoring and other features to help customers in India get the most from their data plan and stream more content using less bandwidth.”

 

 

April 26, 2017   No Comments

National Security Advisor McMaster meets PM Modi

On his first official visit to the region, United States National Security Advisor H.R. McMaster,  met Prime Minister Narendra Modi in New Delhi, this week. McMaster is the highest ranking Trump administration official to visit India so far.

“The two sides discussed a range of bilateral and regional issues, including their shared interest in increasing defense and counter-terrorism cooperation,” the U.S. Embassy in New Delhi said after the meetings. “NSA McMaster emphasized the importance of the U.S.-India strategic relationship and reaffirmed India’s designation as a major defense partner,” it said, noting that the meetings were ‘productive’.

McMaster-Modi Meeting

The Indian side said, “The Prime Minister recalled his positive telephonic conversations with President Trump that reaffirmed the importance attached by both sides to the strategic partnership and to stepping up India-U.S. engagement across the board.”

During the meeting, both McMaster and Modi exchanged views on “how both countries can work together to effectively address the challenge of terrorism and to advance regional peace, security and stability,” reports the Indian Express.

 

April 20, 2017   No Comments

India Could Outpace China with Shifts in U.S. Policy

In a long article, supported ably by charts, the South China Morning Post compares the differences between the economies of India and China, and puts forth reasons why “India could trump China as U.S. policy shifts“.

China's A50 vs India Nifty 50

Highlights of the publication’s views:

SCMP Views on India China
Debt India’s debt ratios are only half of those of China and have not been growing during the past decade The country is awash in debt. China’s total debt (public + private) portends slower growth
Trade Much less export dependent: Exports account for 13 % of GDP Export dependent: Exports total 21 % of GDP
Exports to US: 1.6% of GDP Exports to US: 4% of GDP
India’s lack of dominance in the traded-goods sector may help avoid the ire of a more insular U.S. Vulnerable to any change in the mood in Washington
Politics India doesn’t appear to be on President Trump’s radar and… President Trump has focused his trade concerns on two countries: China and Mexico
… This is good news for India and worrisome for China A trade war with the US could destabilize China’s economy and augment the probability of a debt crisis and a currency devaluation
Currency The Indian rupee is probably about fairly valued Currency is overvalued
India’s FX reserves rose from $326 billion in early 2016 to $337 billion in early 2017 Spent one quarter of its currency reserves defending the renminbi
Equity Markets India’s Nifty Fifty Index has vastly outperformed the China A50 in recent years; trades at 18.6x earnings China A50 trades 12.8x earnings for Chinese shares
Demographics and Agriculture India’s per capita consumption is 2500 calories per day Chinese per capita consumption is now over 3,000 calories per day
India’s population will probably expand by 30% over the next 25 years China’s will probably stay about the same adding about 0.1 per cent to China’s population per year
India represents an enormous opportunity for the world’s farmers, especially those who can provide lentils, peas, chickpeas, almonds and other dietary staples. Also, as India grows richer, consumption of dairy and vegetable oils will probably grow considerably China, by contrast, has a mature diet and its food consumption needs may not change a great deal going forward

April 13, 2017   No Comments