Industries

Govt. to Inject US$2 Billion into Shipping Industry

Mar. 18 – The Indian government is mulling a Rs 100 billion (US$2 billion) package to help shipping companies buy new vessels as Indian and foreign banks tighten credit lines.

"Foreign banks are not lending now. Traditionally they’ve been the lenders for shipping acquisitions. This is some sort of financing for acquisition of new ships by Shipping Corporation of India and also by other Indian private shipping companies," APVN Sarma, secretary, ministry of shipping told Reuters.

Tata Teleservices and NTT DoCoMo sign US$2.6 billion Deal

Feb. 24 – On Monday, the Indian government finally gave their nod to Japan’s NTT DoCoMo buying a 27.3 percent stake in Tata Teleservices Ltd the country’s sixth-largest mobile operator for 129.24 billion rupees (US$2.6 billion). The deal will also allow NTT DoCoMo to acquire 20.25 percent in Tata Tele's listed unit Tata Teleservices (Maharashtra) Ltd, for 9.45 billion rupees (US$188 million) the government said. The twin investments make this one of the largest foreign direct investments to flow into India in the past year and NTT DoCoMO's largest overseas invetsment in eight years.

This marks the Tata Group’s third major international deal. In 2007, Tata Steel bought the Corus Group Plc for US$13 billion marking India’s largest takeover. Last year the conglomerate’s automobile arm Tata Motors bought Jaguar and Land Rover for US$2.3 billion.

India to Introduce US$20 Laptop

Feb. 2 – In order to boost affordable education in rural areas, India will launch a US$20 laptop tomorrow. The low priced laptop is pioneered by scientists at the Vellore Institute of Technology, the Indian Institute of Science in Bangalore, the Indian Institute of Technology in Madras and at the state-controlled Semiconductor Complex.

The laptop which will undercut Asustek’s US$200 scaled down EeePC as it boasts a 2Gb Ram capacity, wireless connectivity, fixed Ethernet, expandable memory and consumes just 2 watts of power.

If commercially sustainable, the US$20 laptop would be a boon to the Indian government which needs to educate more than 550 million children under the age of 25 in remote areas. The government has been working on several e-learning software’s and has already built networks in many rural areas, the advent of an affordable computer would complete the governments plan of providing quality education to towns and villages.

Canada and the UK Plan to Sign Nuclear Deals with India

Jan. 30 – After the U.S., France and Russia, Canada and the UK plan to sign nuclear deals with India. Officials from the nuclear power industry of the United Kingdom and Canada lead by their high-profile ministers – British secretary of state for business, enterprise and regulatory reform Peter Mandelson and Canadian minister of international Trade Stockwell Day were in India last week to discuss the nuclear deal.

Energy deficient India has indicated that it needs foreign economic assistance to achieve its aim of building 18-20 nuclear reactors worth an estimated US$27 billion. Industry insiders believe the country will need a total investment of US$150 billion over the next 15 years to help bridge an energy shortfall.

India Celebrates Republic Day

Jan. 26 – Happy Republic Day!! The 26th of January is celebrated as India’s Republic day and today marks the 60th Anniversary of adopting the constitution of India and India becoming a Sovereign, Democratic and Republic state.

There are two days linked with India’s freedom from British rule: the first is Independence Day, and the second, Republic Day. Republic Day marks the day when India celebrates her national identity, free of foreign rule. Although India won freedom on the 15th of August, 1947, she adopted her constitution on the 26th of January 1950. Rajendra Prasad was consequently elected the first President of India.

NRI Weddings Drop as U.S. Economy Slows

Jan. 23 – A good education and a highly paid job abroad once meant that that the Indian expatriate male was a prized catch. But once news of the downfall in the U.S. economy hit Indian shores, marriage offers to America based potential bridegrooms have plummeted.

With no security to back them, massive lay offs and no growth prospects parents of young Indian girls are shying away from America returned Indian accountants, investment bankers, software engineers and their ilk. Potential brides are instead looking to men in India, who also offer a good education, a secure job and most importantly the option of not moving too far away from home.

"Since the global slowdown, we have registered a 20 percent decline in demand for NRI grooms," the chief executive of www.bharatmatrimony.com, Murugavel Janakiraman, was quoted as saying by Mumbai's Midday newspaper.

FDA Opens Offices in Delhi, Mumbai

Jan. 16 – In order to ensure the safty and quality of food and drug products being exported from India to the United States, the U.S. Food and Drug Administration (FDA) recently opened two offices in New Delhi and Mumbai.

The move is part of the FDA's Beyond Our Borders Initiative, which will place 35 personnel in 14 locations around the world. The FDA has already opened offices in China and further plans to start offices in Mexico, South America, Europe and the Middle East.

The move into India by the FDA is two pronged – a US government audit last year said the FDA’s infrastructure was inadequate to inspect factories that export drugs to the U.S..To compound their problem further, India is also the fourth largest exporter by volume of drugs and biologics, especially generics, to the US. The Indian pharmaceutical industry had exported drugs worth about US$7.4 billion (Rs 363.6 billion) last year.

Auto Industry Grows by 2 percent in 2008

Jan 13 – Tighter credit, a weak job market and a slowing economy pulled growth in India’s passenger car sales down to two percent or 1.2 million units in 2008.

Car makers across the board were affected by the downturn as sales dropped seven percent in December itself. Maruti Suzuki India Ltd., the nation’s biggest carmaker, suffered a 10 percent drop in sales in December while Tata Motors Ltd.’s sales fell 47 percent. Honda Motor Co has also decided to delay opening its second factory in Asia’s fourth-largest automotive market.