Business Opportunities in India

According to industry reports, the hospitality industry in India is growing at a rate of 15 per cent annually. More and more companies in India are investing in the sector to fill in the gap between supplies (61,000 rooms) and demand (100,000 rooms).

The year 2010 saw the demand in Hospitality Industry pick up after a slow growth in 2009. A company in India such as Reliance Industries (RIL) is entering the hospitality industry through a JV with Mumbai-based real estate company Maker Builders. RIL plans to build two hotels in Mumbai Bandra Kurla Complex.

International hotel chains such as Hyatt, Radisson, Meridian and Marriot are expanding their chains in the country by tying up with companies in India. World hotels will be signing a deal for a resort at Aamby Valley in Maharashtra as well as opening business hotels in New Delhi and Chennai to enter the hospitality industry. InterContinental Hotels Group (IHG) has tied up with Holiday Inn Express, a mid-market hotel brand, and its first property is expected to open in Noida in 2012. Lebua Hotels & Resorts, a Thailand-headquartered luxury hospitality chain is planning to enter India as well. Lebua has hotels in Bangkok and New Zealand.

According to the World Travel and Tourism Council (WTTC) 2011 report, India is expected to attract 6,179,000 international tourist (overnight visitor) arrivals in 2011, generating US$ 15.05 billion (INR678.6bn) in visitor exports (foreign visitor spending, including spending on transportation). The direct contribution of Travel & Tourism to GDP is expected to be US$ 34.8 billion (INR1,570.5bn) in 2011 which is about 1.9 per cent of the country’s GDP. This reflects that the hospitality industry in India will have to gear up to cater to such high demand. Companies in India are investing their capital and industry reports predict that the capital investment in India, in the travel and tourism sector will grow at the rate of 8.8 per cent between 2010 and 2020.

Taking the cue, online travel companies too are making their entry in India to cash in the booming travel and hospitality industry. Hotels.com, an international online hotel booking portal, has plans to spend about Rs 25 crores on promotional activities. ERevMax, an online channel management technology provider, has developed an innovative product for the hotel industry. The product allows fully automated inventory management and rate calculation across over 700 connected websites based on channel performance.

Mandarin Oriental Group, which owns one of the world’s most luxurious hotels, resorts and residences, will be adding 16 new properties in India in the next five years. Other Companies in India such as Small Luxury Hotels of the World (SLH), a marketing firm of luxury hotels, is expecting to expand their foothold in India. Currently, SLH has 13 hotels in India and hopes to add 10 more hotels by the end of 2011. The company also has a website for travel agents through which agents can book rooms for their clients.

The Indian economy is boosting with growth and is attracting the foreign players to come, invest and be part of the aspiring Indian investment climate. One of the leading sectors harnessing the limelight potential is the Indian Fast Moving Consumer Goods sector, with a market size of US$ 25 billion (2007–08 retail sales). Food products being the largest consumption category in India, so much so that the sector constitutes nearly 2.15 per cent of India's gross domestic product (GDP). India is recognised as a cost-effective quality manufacturing base in the world market. Food products accounts for nearly 21 per cent of the country’s GDP. India is the largest producer of several fruits, such as banana, mango and papaya, and the second-largest producer of vegetables such as brinjal, cabbage and onion. The food processing industry is one of the largest industries in India, and is ranked fifth in terms of production, consumption, export and expected growth.

Tracking the size of the food processing industry in India, it has increased from US$ 57 billion (INR 2,736 billion) in 2004 to US$ 75 billion (INR 3,600) in 2007. Moreover, the sector attracts foreign direct investment (FDI) worth Rs 576 crore (US$ 127.50 million) in the first eight months of 2010-11, according to Mr Harish Rawat, Minister of State for Agriculture and Food Processing Industries.

CG Foods, a noodles and snacks firm set up by Singapore-based Cinnovation Group, is all set to invest Rs 40 crore (US$ 8.82 million) for establishing a manufacturing plant in Gujarat.

The FMCG forms a concrete part of every individual’s life. With the facilitation from the Indian government and the relatively aloof economy during the recession, the companies are foraying into the Indian market with their products in order to tap the vast middle class base of India.

The industry intends to provide additional option to the consumer. Keeping the lead, companies are also looking forward to spend upon research and technology (R&D), with Nestle, another FMCG major plans to invest Rs 230 crore to set up its first R&D centre in India at Manesar in adjoining Gurgaon district.

The invariably growing Indian economy is witnessing its golden age, with the Indian talent in research being recognised globally. The companies foraying into India harness the potential and reap the benefits of the low infrastructure, production and labour costs. In addition, the companies in India like the Pune-based Thermax, has initiated a solar project at a village in Chakan near Pune, in association with the Department of Science and Technology at a cost of US$ 2.84 million to electrify the village. It is these developments, which form the backbone of the growth story of India. It is technology sector, which forever provides inputs to the innovation and research and ignite the investment climate in India.

Significantly, research in science and technology sector includes various sectors include nano technology, renewable energy, space sector besides other related sectors. The investment climate in India being conducive and open to be harnessed is all ready for companies in India and that from abroad. In all the presence of good, sophisticated and latest technological infrastructure attract the foreign firms to have their respective development centres in India, besides reaping the benefits of the lucrative investment climate in India.

The invariably growing Indian economy is witnessing its golden age, with the fast moving consumer goods (FMCG) global companies foraying into India to harness the potential and reap the benefits of the rampantly growing economy. The FMCG in India form a significant part of the business world in India, as the heightened access to information has made the consumer more aware. It assists the consumer in comparing and asking for better products.

The growing consumer markets have reeled in a new era of retailing. No wonder the international fast moving consumer goods (FMCG) companies like Carrefour and the Wal Mart are pressurizing the Indian government to open the India’s multi-brand retail sector. Carrefour, the world's second-largest retailer, opened its first cash-and-carry store in India in New Delhi on December 31, 2010 to tap the Indian Consumer Market. The store, Carrefour Wholesale Cash&Carry, is located in the Seelampur area, east of New Delhi in the Shahadara neighborhood.

Moreover, Chennai-based FMCG India space reported CavinKare’s plan to invest around US$ 109.50 million over the next two years in various expansion plans. In addition, Nestle, the fast moving consumer goods (FMCG) major, plans to invest US$ 50.49 million to set up its first research and development (R&D) centre in India at Manesar in adjoining Gurgaon district. The facility will be made operational by July 2012. Similarly, the direct selling Fast Moving Consumer Goods (FMCG) company, Amway India Enterprises is aiming at a 25 per cent growth to clock US$ 545.7 million by 2012.

Additionally, the Swiss fast moving consumer goods (FMCG) player, Nestle plans to make further inroads into the rural consumer markets. The company has asked its sales team to deliver “6,000 new sales points every month in rural areas” to expand presence in Indian villages, according to Antonio Helio Waszyk, Chairman and Managing Director, Nestle India. India's FMCG sector is poised to reach US$ 43 billion by 2013 and US$ 74 billion by 2018.

Furthermore, according to data from market researcher Nielsen, the fast moving consumer goods industry posted a 14 per cent sales growth year-on-year in April 2010, the highest in eight months. US-based Harley Davidson, the iconic heavyweight motorcycle maker is targeting the urban consumers markets in India. Harley Davidson opened its first outlet in Hyderabad recently and plans to open more across the country.

Indian consumer market had access to private label products in food and beverage, apparel, footwear and fast moving consumer goods products.

On another note, the number of foreign tourist arrivals in India has increased as India continues to be a favored tourist destination for leisure, as well as business travel. Banking on the government’s initiative of upgrading and expanding the country’s infrastructure like airports, national highways etc, the Tourism and Hospitality industry is bound to get a bounce in its growth. Significantly, the Indian hospitality industry is projected to grow at a rate of 8.8 per cent during 2007-16, placing India as the second-fastest growing tourism and hospitality market in the world. Initiatives like massive investment in hotel infrastructure and open-sky policies made by the government are all aimed at propelling growth in the hospitality sector. The Indian hospitality sector is certainly the most apt replication of the belief 'Atithi devo bhava'- touch of tenderness, a helping hand and a welcoming visage.

The boosting economy of India is offering great potentials for doing business in India for the overseas investors to make investment in India and is encouraging them to consider India as one of the best place for their business development. The most in focus sector being the real estate. Inflation rate is coming down and increased market demand for goods and services are good signs which attract foreigners to do business in India.

There are various factors like quality, availability and reliability of infrastructure services, state or central government’s efforts, good power supply, transportation facilities connecting important nodal points, relaxed tax regulations, efficient banking systems and relatively cheaper availability of labour and raw material, export and import options etc. Doing Business in India is the most attractive destinations for the investments. Even the World Bank analysis has indicated that the infrastructural development and institutions remain the main factors in the development of India’s private sector. The real estate sector is one of the most booming sections in India.

The economy of India is one of the fastest growing economies of the world with good population base. The growth rate of gross domestic product (GDP) is reviewed around 8.75 per cent plus against 7.4 per cent in the previous year. The International Monetary Fund (IMF) indication of India’s GDP is much higher at a growth rate of as high as 9.7 per cent. The economy of India is one of the most favorable economies in the world as of now. This higher growth trends are creating good opportunities to do business in India.

The Banking system of India has survived well to the global economic crisis. In India, nationalized banks play an important role in banking sector (50.5 per cent of the aggregate deposits and hold the highest share of 50.5 per cent in the total bank credit. Banking facilities both through the foreign banks and regional rural banks had a share of 5.5 per cent and 2.5 per cent respectively in the total bank credit.

The economy of India is one of the most robustly growing economies in the world with a huge population base. The recent trends show that the growth rate of Economy of India will grow at around 8.75 per cent for current year. The Indian economy is performing well as the purchasing power parity has increased in the last six months.

Economy of India is ranked the fifth largest economy in the world and third largest GDP in the entire continent of Asia. The world's popular brands have started seeing the economy of India as the potential market for their business expansion.

Conclusively, it is no surprise for India being chosen as one of the most favoured foreign direct investments (FDI) destinations as the economy of India grows in leaps and bounds. The strong banking system proved a blessing during the financial meltdown, even opening the opportunities for doing business in India. Besides, the real estate and infrastructure management turned out to top the private equity (PE) investment sector at 23 per cent of the total with US$ 99.36 million, according to Deal tracker October 2010, Grant Thornton.

The economic growth in India is on a rampant move with Mr Pranab Mukherjee hoping the gross domestic product to reach 9 per cent as he said while addressing the India Economic Summit (IES) 2010.The economic growth in India is all set to surpass the developed countries as it rides high on back of manufacturing and an overall positive investment climate in India. The companies in India are all set to harness the potentials being created by the robust economic growth in India. The foreign companies in India are glad to be part of the investment climate in India, as the economies of the developed countries struggle to stay intact.

The investment climate in India is also representative of the growing Indian economy and the prospering business opportunities in India. The soaring sales being highlighted by the companies in India are reflective of the potentials of the investment climate in India. The investment climate in India is very much dependent on the consumer and the Economic Growth in India is boosting on basis of the latter. The economic growth in India is also ascertain to India's foreign exchange reserves, which have crossed the US$ 300 billion mark for the first time since August 2008. The data in itself represents the positive investment climate in India and the economic growth in India.

Furthermore, economic growth in India's merchandise exports will cross the US$ 200 billion target for 2010-11 and the Government is working with the industry to double India's exports of goods and services by 2014, said Mr Anand Sharma, Union Minister of Commerce and Industry. The economic growth in India had registered a growth rate of 8.8 per cent in the first quarter of 2010. The investment climate in India is moving positively and is assisting to improvise the economic growth in India to achieve the double digits.

Significantly, with the two-way trade between India and the United States, expected to reach US$ 50 billion in 2010-11, with investments moving in both directions, said India's Ambassador to the US, Meera Shankar. Thus, the investment climate in India is dependent on various factors including the positive attitude of the Indian Governments, besides the healthy competition environment as mooted by the Companies in India. The overall image of the economic growth in India is favourable especially in terms of the investment climate in India.

India's infrastructure sector output grew 2.5 per cent in September 2010 from a year earlier, slower than the upwardly revised annual growth of 3.9 per cent in August, as per the Government data. The Investment climate India is also directly proportional to the demand and supply. The increasing consumer awareness and the ability to compare and ask for the best, in addition to the increasing economic growth is representative of the positive economic growth in India. The investment climate in India is an indicator of a boosting economic growth in India. Companies in India are representative of the investment climate in India, which is a harbinger of the growing economy and confirm the goal of the double digit growth as a reality.

India economy seems to be in its most positive note of development, as it witnesses overall infrastructure development, with companies in India and that from abroad demanding better infrastructure quality. The tempting and prosperous investment climate in India is reaching out to all corners of the globe. The investment climate in India is the most conducive market for companies to invest especially with focus on infrastructure sector which has given an impetus to the companies in India. The companies in India are utilizing the potential created by availability of better infrastructure developments.

The recently held Commonwealth Games (CWG) also led to increased Infrastructure developments with regard not only to flyovers, metro lines, a new airport terminal but also infrastructure related to Sports. These infrastructure developments have created a much healthy investment climate in India, not only for the companies in India but also for companies coming from abroad and investing in India.

It is on these lines that the globe has become a more accessible place for companies in India including infrastructure developments related to IT. Significantly, Mr Pranab Mukherjee, Finance Minister expects around 50 per cent of the total spending on infrastructure to come from the private sector by 2012. The great advantaged of infrastructure is not only better transportation, accessibility or connectivity but also helps in improving the investment climate in India. Recently, riding on the investment companies in India, RITES (Rail India Technical and Economic Services) has expressed interest in offering its services in the infrastructure development including airports, roads, ports, railways, and mass rapid transit programmes in Kenya.

The Investment climate in India is one of the most significant factors especially during the global meltdown period. The infrastructure in India is coming to the international standards as the companies in India are ready to provide and compete the global markets besides the domestic markets.

Furthermore, the infrastructure developments in the Science and Technology sector is also reaching new heights and it is these infrastructure developments, which are leading the companies in India are witnessing a surge in funds from FII’s. Additionally companies in India like the Pune-based Thermax, has initiated a solar project at a village in Chakan near Pune, in association with the Department of Science and Technology at a cost of US$ 2.84 million to electrify the village. It is the science and technology sector, which forever provides inputs to the investment climate in India a boost.

Significantly, the science and technology sector includes nano technology, renewable energy, space sector besides other infrastructure related sectors. The investment climate in India being conducive and open to be harnessed is all ready for companies in India and that from abroad. In all the presence of good, sophisticated and latest technological infrastructure will attract the foreign firms to have their respective companies in India, besides reaping the benefits of the lucrative investment climate in India. Thus, concluding the investment climate in India to be of great potentials, which is offering potentials in infrastructure developments over a large base of sectors.

India is basking with the spotlight on the investment climate, as it sustained its economic growth through the global recession downturn. The business opportunities in India gave the foreign investors an impetus to look afresh at the market. The South Asian market, in particular India and China on a whole has been the horses to cross through this difficult phase of the economic meltdown. The infrastructure and the related sectors made the basis of the investment climate in India, with more and more companies coming in to rope in the benefits of the industry. The infrastructure related business opportunities in India witnessed a high requirement as the various sector including roads, railways, ports etc composing the infrastructure sector experienced a surge in the investments. Recently, Mr Nath, Minister for the Highways, estimated private investments in the road sector (infrastructure) to be at US$ 41 billion.

Witnessing robust growth in the Indian economy, the investment climate in India is also witnessing a new high. The business opportunities in India backed by favourable policies and schemes by the Indian government are all making the Investment climate in India to be conducive for the investors to invest in sectors like infrastructure, automobile, education, real estate besides others.

The Infrastructure related business opportunities in India is witnessing a revolution with a heightened interest from all states to improve upon the infrastructure, as infrastructure emerge as the key ingredient for attracting the investors to explore the potential of the investment climate in India and to make utmost use of the business opportunities in India. Another area of infrastructure, receiving greater impetus is the ports. This infrastructure component is seeing a new trend of improvised and sophisticated intelligent systems on account of new technology and also cause of increasing business opportunities in India through the water front.

Additionally, the vicious circle of growth is also helping the employment rate in India and thereby increasing the expenditure capacities of the households. The relaxed foreign direct investments (FDI) have led to an increase in the business opportunities in India with a raise in the number of merger and acquisitions (M&A) and joint ventures (JV).

Moreover, the automobiles sector in India is witnessing a renaissance with numerous foreign companies entering in a JV and also propagating the Indian infrastructure besides setting up their automobiles manufacturing units to enhance the Indian economy. The investment climate in India especially with regard to the automobiles sector has witnessed a robust growth so much so that India is all set to replace Japan to become the largest automobiles hub for the compact car.

Conclusively, the investment climate of India has become more open to investments besides Indian government is taking a step forward to increase the potential of the business opportunities in India. The focus for India is to develop its infrastructure along with strengthening the basic economic growth, so as to avoid any form of economic downturn as witnessed by the US and the developed nations. Thus, the conducive investment climate in India is fostering the increasing business opportunities in India to promote more investments globally to India.

With the facilitation from the Indian government and the relatively aloof economy during the recession, the advent of various Fast moving consumer goods (FMCG) companies in India is being witnessed. The FMCG forms a concrete part of every individual’s life. The companies in India are in a forever race to upbeat their opponents. It may be the case of Coco- Cola versus Pepsi or Bournvita versus Horlicks. The companies are foraying into the Indian market with their products in order to tap the vast middle class base of India.

The major FMCG companies in India are planning to invest over Rs 1,800 crore (US$ 395.2 million) in the next few months. The FMCG intend to provide additional option to the consumer. Keeping the lead, Fast moving consumer goods companies are also looking forward to spend upon research and technology (R&D), with Nestle, another FMCG major plans to invest Rs 230 crore to set up its first R&D centre in India at Manesar in adjoining Gurgaon district. Additionally the telecom sector major, Bharti Enterprises, plans to foray into the retail sector by forming a joint venture (JV) with the Del Monte Pacific arm, DMPL India, looking to invest Rs 200 crore (US$ 43.25 million). FMCG sector in India is witnessing large amount of investments from various countries. Also, the foreign FMCG companies find India as a suitable investment destination.

Furthermore, telecom sector in India is witnessing new heights with GSM operators adding a whopping 13.5 million mobile subscribers in August 2010 taking the total tally to 481 million subscribers. In addition, according to the telecom sector authority, Telecom Regulatory Authority of India (TRAI), the wireless user base rose by 2.66 percent to 652.42 million in July 2010. The telecom sector in India has been recording new heights ever since the roll-out of the third generation (3G) services. Fresh impetus has been experienced in the Indian telecom sector with the operators of the telecom sector making inroads in the Indian market. Furthermore, the telecom sector is also witnessing new innovations and technology developments in reference to the mobile value added services (VAS) include text or SMS, menu-based services, downloading of music or ring tones, mobile TV, videos and sophisticated m-commerce applications. The science and technology sector in India is in a mood to capture new heights, as it flows with the Space Vision 2025. A new ignition has been ignited in the country’s research and technology sector with India signing landmark civil nuclear deal with various countries.

Significantly, India has been venturing actively into the dimensions of science and technology. The various organizations like Indian Space Research Organization (ISRO) are being fully supported by the Indian government in their new ventures in science and technology segment. The most attention grabbing news, being that of finalization of seven payloads that will go on the second lunar mission, Chandrayaan-2, by the National Committee of Experts, as per a press release of ISRO. Another major, science and technology development in India was the setting up of the world record by flight testing the supersonic cruise missile BrahMos off the Orissa coast.

As per a recent study on corporate investments by the Reserve Bank of India, the investment in infrastructure is higher at 53 per cent of the cost in FY’10 as compared to the 45 per cent in FY’09. Power and telecom accounted for over half of the cost of all projects. The total investment in the infrastructure sector stood at Rs 2,95,805 crore in FY’10.

Among the segments of infrastructure sector, the power sector attracted the maximum investment to the amount of Rs 1,68,326 crore, telecom at Rs 1,17,689 crore, metal and metal products at Rs 1,12, 732 crore, construction at Rs 47, 636 crore and mining and quarrying at Rs 14, 009 crore.

A lot of corporate investment was witnessed in metals and metal products with a share of 20.3 per cent, followed by construction projects and cement among the various infrastructure segments.

The investment was predominantly directed towards the power sector. The infrastructure sector also observed a continued thrust on public private partnership according to the study and had a positive impact on stimulating investment in power, telecom and construction projects in the infrastructure sector.

India’s telecom sector witnessed an increase in user base by 17.98 million users in June 2010. The telephone subscriber base in the country’s telecom sector went up to 671.69 million. India’s telecom sector is one of the largest telecom markets in the world and is estimated to touch 700 million subscribers by 2012. As per the Telecom Regulatory Authority of India (TRAI), the number of telephone subscriber base in the Indian telecom sector stood at 653.92 million as on May 31, 2010 thereby recording an increase of 2.49 per cent from 638.05 million in April 2010. Recently, the telecom infrastructure firm Quippo-WTTIL has signed a deal with IBM to provide technical support. The Indian Telecom sector is among the most growing sectors in the country.

The automobiles sector in the country has witnessed an upsurge due to the burgeoning middle class. The car sales have increased and India’s automobile sector is likely to become the top ten markets for the company globally by 2011. India’s automobiles sector is an emerging favorite investment destination for automobiles manufacturers.

In the tractor segment in the Automobiles sector, Mahindra and Mahindra (M&M) has become the world's top tractor company by selling a record of 1.59 lakh tractors in 2009 and surpassed John Deere of the US.

The growing Indian Telecommunications network is the second largest in the world with more than 621 million users. The Liberalization process in India primarily allowed various private telecom players for value added service and later on with the growing Indian Economy, India is one of the manufacturing hubs for many Telecom Companies. An attractive trade and investment policy and lucrative incentives for foreign collaborations have made India the most attractive markets for the telecom equipment suppliers and service providers.

The telecom sector in India has undergone a major process of transformation with significant policy reforms. India offers an unprecedented opportunity for infrastructure vendors, telecom service operators, manufacturers and associated services companies. A host of factors are contributing to enlarged opportunities for growth and investment in the Indian telecom sector. However, the Indian Telecom market is yet to reach many geographical locations, there are yet load of opportunities for more and more telecom operators to invest in the Indian Telecom Sector.

Various companies in India are foraying into joint ventures (JV) or are making investments abroad to increase their global footprints. Companies in India like Adani Enterprises, has acquired an Australian coal asset of Linc Energy in a cash and royalty deal worth US$ 2.7 billion (Rs 12,500 crore). Companies in India have marked their presence globally.

Furthermore, information technology (IT) service providers, Cognizant, Tata Consultancy Services (TCS) and Infosys have topped the latest ranking of service providers in Europe, in a survey done by EquaTerra, an IT advisory service provider. Pharmaceutical companies in India have also increased their penetration in the US generic market. Companies in India like Lupin Pharmaceuticals, Zydus Cadila, Glenmark, Aurobindo, and Torrent Pharma have increased their ranking in US generic market, as per the data released by IMS Health, a global market research agency.

Following the same line of thought, the Fast Moving Consumer Goods(FMCG) companies are also foraying into acquisitions to increase their global footprints. The FMCG, Marico Limited has acquired the over-the-counter healthcare brand, Ingwe at an estimated investment of Rs 10 crore (US$ 2.14 million) through its subsidiary, Marico South Africa (MSA).

Similarly, the FMCG company, Dabur India Ltd has announced a US$ 69 million acquisition of Turkish personal care products company Hobi Kozemtik Group. The acquisition of Hobi Kozmetik is in line with Dabur's strategy to aggressively expand its scale of operations and strengthen its presence in the FMCG space across the globe. Looking forward the FMCG firm, Godrej Hershey, a 51:49 joint venture between the Godrej Group and American chocolate maker Hershey’s, plans to roll out some key brands from abroad — Kisses, Reese’s and Hershey’s Chocolate — in the country.

The telecom sector in India is experiencing a push with more and more mobile phone companies venturing into the indigenization effort by bringing global component vendors to set shop in India. The move is part of a strategy to make India a global manufacturing hub for mobile phones, rather than just undertake their assembly. The telecom sector further received an impetus with Pune-based anti-virus solution provider, Quick Heal Technologies Pvt Ltd launching it's ‘PC2Mobile Scan', which provides for virus-scan of mobile phones by connecting them to a PC or a laptop.

The Science and Technology in India will witness an important development with Indian Space Research Organization (ISRO) planning to launch SARAL by 2011, a satellite to monitor sea water levels made in collaboration with the French National Space Agency. Moreover, Mr Praful Patel, Minister for Civil Aviation has launched the final operational phase of the Global Positioning System (GPS) Aided Geo Augmented Navigation system (GAGAN) to further boost the science and technology sector.

The retail industry in India is emerging to attract new investments in the retail sector in the country.

Bharti Retail Ltd operates about 80 stores and owns a chain of grocery outlets and easyday market hypermarkets to cater to the retail market in India . Owned by billionaire Sunil Mittal’s Bharti Group, the company plans to open 140 retail stores in India in 2010, said Raj Jain, managing director of the group’s venture with Wal-Mart Stores Inc.

He added that Wal-Mart can open a large number of retail stores in India if the government allows foreign direct investment in the South Asian country’s retail industry.

The company awaits policy changes in the retail market in India. The Bharti-Walmart JV runs the BestPrice Modern Wholesale stores to cater to the retail sector in North India. This is a 50:50 cash and carry joint venture between Bharti Enterprises and WalMart. The company will require additional manpower as it plans to open more cash-and-carry stores in the retail sector in the country. At present, it has two stores in India (in Punjab) and employs 450 workers.

The government has been in talks to open the multi-brand retail sector for FDI. At present, up to 51 per cent foreign investment is allowed in single brand retail and 100 per cent FDI in wholesale, but none in multi-brand.

The company has recently launched the second Bharti-Walmart Training Centre in New Delhi by entering into a public-private partnership with the Delhi Government. The centre would enroll up to 2,000 students a year to impart free of cost training in sectors, such as retail, BPOs and hospitality. The centre was inaugurated by Sheila Dikshit, Chief Minister of Delhi and would work to fill up the shortage in skilled workers for organised retail and cash-and-carry stores.

At a recent function, the Daniele Smadja, Head of the Delegation of the EU to India, said "We would like India to further open its economy to EU investments.

Furthermore, Nokia India is focussing on the retail distribution model. It is for the first time the world’s largest mobile phone company has initiated a retail distribution model for its services venture.

In yet, another format of the retail market in India, the major retail players proved to be a boon to the small food processing vendors as they helped the latter put in a system which in turn attracted FMCG companies to hire the same vendors on account of quality.

Similarly the retail market in India is foraying into various sectors. Retail in healthcare sector is witnessing an immense interest from private equity investors. The upturn in the retail industry in India is attracting PE investors, gearing them to maximise their profits with the highest deal volumes being in various sectors including retail. According to V Jayasankar, Head, Private Equity, Kotak Investment Banking, “There is high level of interest in the retail sector as it directly feeds on consumption.

Additionally, the airport retail market in India is witnessing a renaissance with the fast pace of development in the expanding airport facilities in the country and the increasing number of passengers. With people on a constant move the target audience is easily available and the round the clock mode of retail sector available on airport gives that strategic advantage to the retail players.

According to the Department of Industrial Policy and Promotion (DIPP), FDI flows into housing and real estate in India in April 2009-January 2010 stood at US$ 2649 million. FDI flows into housing and real estate in April 2000-January 2010 stood at US$ 8161.31 million.
According to a latest industry body report, foreign direct investment (FDI) in real estate in India will increase to US$ 25 billion in the next 10 years, from present US$ 4 billion on the back of increasing recognition as an infrastructure service driving the economic growth engine of the country.
Recently, a discussion draft of the Real Estate (Regulation of Development) Act, referred as the Real Estate Bill, was released by the Union Ministry of Housing and Urban Poverty Alleviation. The objective of the Real Estate Bill is to establish a Regulatory Authority and an Appellate Tribunal to regulate, control and promote planned and healthy development and construction.
Reserve Bank of India recently revised the norms for urban cooperative banks (UCBs) for giving loans to the housing and real estate sector. According to RBI, working capital loans to small contractors against hypothecation of construction material are exempted from the existing norms that allow UCBs to use 15 per cent of the total deposits for giving loans for housing and commercial real estate in India.
The Reserve Bank has reworked the rule for aggregate limit for housing finance, which allows urban banks to use up to 15 per cent of deposits to provide housing, real estate and CRE loans.
Furthermore, real estate companies will benefit from the demand for residential and office space in Tier-II and Tier-III cities and have planned various projects in 2010-11. DLF, the largest realty firm serving the real estate sector, opines that economic growth is faster in the smaller cities and hence will create more demand for real estate.
Additionally, Ansal Properties is also executing ongoing residential projects in Jaipur, Jodhpur, Agra, Ajmer, Kundli and Panipat, among other cities enhancing the Real Estate development in the country . In 2010-11, the company is planning to launch a million sq ft area in a commercial project in Lucknow for office buildings and a shopping mall.
Also, real estate major DLF, has announced that Caraf Builders & Constructions has raised its stake in DLF Assets (DAL) to 91 per cent. Caraf is involved in the acquisition and development of real estate properties in India. The company holds four rent-yielding properties in Gurgaon, Kolkata and Chandigarh. DAL is a co-developer for four IT/ITES Special Economic Zones (SEZs) based in Gurgaon, Chennai and Hyderabad.

Jajati Patro is a well-known Journalist, who collects and interprets data on the web for the global E-seva. These days he is working on Real Estate , Properties and Real Estate

The Indian telecom sector witnessed a total telephone subscriber base of 621.28 million and a wireless subscription of 584.32 million, according to Telecom Subscription Data released by TRAI as on 31st March 2010. The overall tele-density and Broadband subscription base in the telecom sector touched 52.74 and 8.75 million respectively, as on 31st March 2010.The Indian telecom sector saw number of telephone subscribers in India increase to 621.28 million at the end of March-2010 from 600.98 million in February-2010, thereby registering a growth rate of 3.38 per cent. With this, the overall Tele-density in India reaches 52.74.

Wireless subscriber base in the telecom sector increased from 564.02 million in February 2010 to 584.32 million at the end of March 2010, registering a growth of 3.60 per cent while the wireless tele-density stands at 49.60. Wireline subscriber base at the end of March 2010 remains at 36.96 million, same as in February 2010. The Indian telecom sector includes the presence of BSNL/MTNL, two PSU operators, which hold 84.77 per cent of the Wireline market share. Overall Wireline teledensity in the Indian telecom sector stands at 3.14.Total Broadband subscriber base in the telecom sector has increased from 8.59 million in February 2010 to 8.75 million in March 2010, there by showing a growth of 1.90 per cent.

According to the Union Finance Secretary, Mr Ashok Chawla, the fiscal situation is positive and encouraging, following the Government getting more than expected revenue from the auction of the spectrum for launching 3G mobile services in India’s telecom sector.The auction for the third generation (3G) spectrum in the telecom sector ended with the government garnering Rs 67,718 crore (US$ 14.53 billion). According to management consulting firm Zinnov, the service providers should be able to absorb the high costs and roll out cost-effective 3G services for the end consumer considering the market opportunity with the total mobile phone subscriber base of about 585 million and the expected increase in revenue per user in the Indian telecom sector.

As per analysts, the 3G technology is likely to have a positive impact on the stocks of winning bidders in the long-term. Meanwhile as per a recent release by the rating agency CRISIL, the availability of 3G spectrum will positively impact the business profiles of players in the telecom sector, enabling them to protect their current market positions, and offer value-added services.

Jajati Patro is a well-known Journalist, who collects and interprets data on the web for the global E-seva. These days he is working on Global Information Technology, Science and Technology and Indian Telecom Sector

The Indian telecom sector witnessed a total telephone subscriber base of 621.28 million and a wireless subscription of 584.32 million, according to Telecom Subscription Data released by TRAI as on 31st March 2010. The overall tele-density and Broadband subscription base in the telecom sector touched 52.74 and 8.75 million respectively, as on 31st March 2010.The Indian telecom sector saw number of telephone subscribers in India increase to 621.28 million at the end of March-2010 from 600.98 million in February-2010, thereby registering a growth rate of 3.38 per cent. With this, the overall Tele-density in India reaches 52.74.

Wireless subscriber base in the telecom sector increased from 564.02 million in February 2010 to 584.32 million at the end of March 2010, registering a growth of 3.60 per cent while the wireless tele-density stands at 49.60. Wireline subscriber base at the end of March 2010 remains at 36.96 million, same as in February 2010. The Indian telecom sector includes the presence of BSNL/MTNL, two PSU operators, which hold 84.77 per cent of the Wireline market share. Overall Wireline teledensity in the Indian telecom sector stands at 3.14.Total Broadband subscriber base in the telecom sector has increased from 8.59 million in February 2010 to 8.75 million in March 2010, there by showing a growth of 1.90 per cent.

According to the Union Finance Secretary, Mr Ashok Chawla, the fiscal situation is positive and encouraging, following the Government getting more than expected revenue from the auction of the spectrum for launching 3G mobile services in India’s telecom sector.The auction for the third generation (3G) spectrum in the telecom sector ended with the government garnering Rs 67,718 crore (US$ 14.53 billion). According to management consulting firm Zinnov, the service providers should be able to absorb the high costs and roll out cost-effective 3G services for the end consumer considering the market opportunity with the total mobile phone subscriber base of about 585 million and the expected increase in revenue per user in the Indian telecom sector.

As per analysts, the 3G technology is likely to have a positive impact on the stocks of winning bidders in the long-term. Meanwhile as per a recent release by the rating agency CRISIL, the availability of 3G spectrum will positively impact the business profiles of players in the telecom sector, enabling them to protect their current market positions, and offer value-added services.

Jajati Patro is a well-known Journalist, who collects and interprets data on the web for the global E-seva. These days he is working on Telecommunications

The value of information technology (IT) software exports from Tamil Nadu rose by 29 per cent in 2008-09 to Rs 36,680 crore in 2008-2009 from Rs 28,426 crore, a year ago. The employment opportunities generated by India’s information technology (IT) should be dispersed to all parts of the state, according to Tamil Nadu Finance Minister, Mr K Anbazhagan. Information technology parks are being established in Municipal corporations like Coimbatore, Madurai and Trichy. ‘TIDEL’ information technology Park at Coimbatore will be completed by May 2010 and will be established at an estimated cost of Rs 380 crore.

Syntel, Inc is planning to invest around US$ 50 million in its recently inaugurated global development centre located in Sipcot's information technology (IT) special economic zone at Siruseri in Tamil Nadu. The centre, upon completion in the next two years, will provide jobs for over 10,000 professionals.

Significantly, the government has relaxed employment visa norms for the over US$ 60 billion information technology (IT) industry, allowing companies to hire foreign nationals as per their requirements.

Furthermore, the Indian information technology (IT) industry's revenue from Germany, Austria and Switzerland could increase four fold to US$ 10 billion by 2020, according to a recently released NASSCOM report.

Delhi-based HCL Technologies Ltd has signed a US$ 500 million (Rs 2,225 crore) strategic pact with pharmaceutical major Merck Sharp & Dohme Corp. (MSD) for a period of five years. HCL will offer software-led information technology solutions, remote infrastructure management, engineering and business and knowledge process services to MSD.

According to Ms K Ratna Prabha, Principal Secretary, Information Technology and Communications Department, Andhra Pradesh is targeting to achieve an export turnover of Rs 70,000 crore (US$ 15.8 billion) and create direct information technology (IT) employment for 125,000 people by 2015.The state level technical committee (STC), headed by the secretary, science and technology (S&T) department of the Government of Orissa, has cleared eight more solar power projects with an aggregate power generation of 230 mega watts (MW).

Significantly, the success rate of incubated companies in India is 60-70 per cent, comparable to that in America, according to 'First Status Report on Technology Business Incubation', the first such survey conducted by the Department of Science and Technology (DST).Meanwhile, technology company IBM has tied up with Indian Institutes of Technology (IITs) in Delhi and Roorkee to jointly promote research in areas of common interest, like green technologies, energy-efficient computing and data mining.

Jajati Patro is a well-known Journalist, who collects and interprets data on the web for the global E-seva. These days he is working on Global Information Technology

The information technology IT spend in India is expected to touch US$ 67 billion in 2010, an increase of 14.1 per cent from 2009, according to the research firm Gartner Inc. By 2013, the IT market in India is expected to grow 11 per cent from 2009-levels. The growth will be driven by IT services, telecommunications, software and computing hardware. The domestic IT services sector, at US$ 6.1 billion, accounted for more than 10 per cent of the overall domestic information, communication and technology (ICT) market in India in 2009. It is expected to witness the strongest growth at 17.6 per cent among the four sectors.

The Indian government’s focus on infrastructure projects with IT dimensions will be a strong driver for overall IT growth within the country, according to Aman Munglani, principal research analyst, Gartner Inc. He also added that the growth of India's Information Technology sector has been driven largely by domestic consumption, with the Indian PC market expected to grow 19 per cent in 2010 and by more than 21 per cent in 2011.

India is among the top four markets in Asia-Pacific, both in size and in its growth prospects for the next five years. The Indian IT security market is forecast to grow more than 20 per cent in 2010. Indian telecommunications services market revenue will reach US$ 41.4 billion in 2013, growing 7 per cent from 2009 to 2013.India’s Telecom sector will grow at a decent rate over long term, said Peter Elston, Strategist at Aberdeen Asset Management. He added that India's penetration rate although has been growing very strongly.

Fast and moving consumer goods (FMCG) majors, Wipro Consumer Care and Lighting (WCCL) and Godrej Consumer Products Ltd (GCPL) are scripting new strategies to sustain growth momentum in competitive markets encouraged by the fourth quarter results. Wipro Consumer Care has kickstarted operations at its new manufacturing facility in Himachal Pradesh and the FMCG firm has invested around Rs 70 crore to set up this manufacturing unit which is now operational. Godrej Consumer Products, part of the Rs 12,000-crore Godrej Group, is chalking out a three-pronged strategy. It will lay stress on rural initiatives, extension of manufacturing facilities and hike in advertisement budget this fiscal. (Apr 28 – for conversion)

India's premier electricity museum, CLP Electrodrome, has been inaugurated at the Science City in Ahmedabad by Gujarat Chief Minister, mr Narendra Modi. A joint initiative of the state department of science and technology, Gujarat Science City and CLP the largest foreign investor in the Indian power sector CLP Electrodrome is the state-of-the-art and highly interactive museum of electricity.

Jajati Patro is a well-known Journalist, who collects and interprets data on the web for the global E-seva. These days he is working on Global Telecommunication

The Indo-German Science and Technology Centre (IGSTC) will be established in about two month’s time in New Delhi, it has been stated by T. Ramasami, Secretary, Department of Science and Technology (DST) and the German Parliamentary Secretary after the 8th Indo-German Committee on Science and Technology. It has been announced by the German President Horst Koehler that 2011-12 will be a German-Indian year that will showcase German politics, culture, art and science and technology.

India’s high status in the field of science and technology research came in for mention at the India Eco Summit where the panelists discussed whether the country had the potential to become a science and technology innovation hub in the near future. The Australian and Indian governments have jointly launched a US$ 100 million science and technology collaboration project that touches on the importance of green science and technology in tackling challenges in water, energy, health and environment.

The Indian telecom sector has added 170 million phone connections in 2009, taking the total subscriber base to 550 million. At present, the Indian telecom market is the fastest growing in the world with the lowest tariffs and market leaders in the Indian telecom sector. The Indian Telecom Analysis (2008-2012) report by RNCOS Industry Research Solutions shows that mobile telecom segment has surpassed all other segments in the Indian telecom sector. Meanwhile the view has been expressed that a considerable degree of consolidation is due to take place in the telecom sector with the end of the tariff war among players in the Indian telecom sector. In the mean time, a big player in the Indian telecom sector, Bharti Airtel, continues to work to make its presence in the African telecom sector with its pursuit of Kuwaiti telecom company, Zain.

In other updates, a international telecom company, Quippo Telecom Infrastructure and Wireless TT Info Services has acquired the tower business of telecom company, Tata Teleservices (Maharashtra) Ltd. Simply North America accounts for nearly 60 per cent of India's information technology export basket and top-tier information technology companies such as Infosys, Wipro and HCL Technologies appear to be aggressively ramping up their delivery capabilities in the region. While the information technology company Infosys Technologies has bought McCamish Systems based in Georgia, HCL Technologies has completed the acquisition and of a data centre in New Jersey.

Meanwhile the information technology (IT) and and ITeS Industry Association of AP has estimated a 20 per cent increase in exports from Andhra Pradesh in the next financial year. In other developments, California-based information technology company NComputing is looking at Tier II and III cities of Uttar Pradesh for growth. Information technology exports from the state of Gujarat are expected to grow by 15-20 per cent in the financial year end 2009-10, according to Ravi Saxena, principal secretary, Department, of Science and Technology (DST), Government of Gujarat (GoG).

Driven by the fast moving consumer goods (FMCG) and apparel segments, the Indian retail market which is currently estimated to be around US$ 350 billion is expected to witness growth by nine per cent annually touching US$ 521 billion by 2012. Bharti Retail President and Chief Operating Officer (COO), Vinod Sawhny, speaking during an industry event, said, "FMCG and apparel sectors contribute the maximum to the growth of the retail market in India." He added, "FMCG in particular has a huge potential to grow... and this will ensure a growth rate of nine per cent year-on-year for the retail sector, which is likely to touch US$ 521 billion by 2012."

Meanwhile, retail companies in India are seeing their margins from FMCG companies go up from 14-15 per cent to 17-19 per cent as they compete for shelf space with retailers’ private labels. Some FMCG companies say that as retailers acquire scale, they also deliver supply chain efficiency and organized scale. The Indian food market, which at US$ 182 billion accounts for about two thirds of the total Indian retail market, has seen the entry of Yum! Restaurants which announced it will invest up to US$ 150 million (about Rs 700 crore) in India where it will compete with companies in India such as Nirulas and Haldiram in the country's organized food and beverage retail sector.

In a recent development that is seen as the global emergence of the Indian FMCG sector, the consumer care and lighting division of Wipro announced its acquisition of the Yardley business in Asia, Middle East, Australasia and certain African markets for US$ 45.5 million from the United Kingdom-based Lornamead Group. Meanwhile the IT division of Wipro, Wipro Technologies, joined some large IT companies in India, including Tata Consulting Services (TCS) and Infosys, in beating estimates for the second quarter of the year 2009. IT companies in India are also seeing the return of big deals with HCL Technologies, Wipro, and Infosys bagging significant deals so far in 2009.

The company’s information technology arm, Wipro Technologies, meanwhile saw its second quarter profits rise 19 per cent to Rs1,162 crore, beating analysts’ estimates. This increase in profits for the company come on the back of significant overseas deal wins and improved demand for services in the United States. Indian information technology companies, Infosys and TCS also posted strong second quarter results and forecast higher growth. In the sphere of (informational technology enabled services) ITeS, Infosys BPO has acquired the US company McCamish for an upfront consideration of US$38 million.

India’s top-ranking status in the field of basic research came in for mention at the India Eco Summit held recently, where the panelists discussed whether, and how, India could become an innovation hub in the near future, given India’s strengths in science and technology and research and development. The governments of Australia and India have launched a US$ 100 million collaboration project on science and technology including green technology to combat the challenges in water, energy, health and environment as a result of climate change. Jajati Patro is a well-known Journalist, who collects and interprets data on the web for the global E-seva. These days he is working on

Prime Minister Dr Manmohan Singh was back from the G-20 summit held at London recently with a smile. The outcome has been satisfactory, he said. President Obama, in his meeting with the PM, had credited Dr Singh with India’s growing financial stature in the world economy. Obama described the PM as a "wise and marvellous" man at an individual conference. President Obama even hailed India's "high stature" because it had "unleashed economic forces" and said a lot of it had to do with "the wisdom of Dr Singh". Dr Singh’s efforts along with the other leaders at improving the economic climate seem to be paying off. According to Dr Singh, India too had provided a fiscal stimulus of about four percent of its GDP ie., approx. Rs 1,20,000 crore in 2008-09. This will help the country's growth rate to reach a little less than seven per cent, comparatively higher than most other economies. "We hope to be able to achieve a similar growth rate in 2009-10, with continuing reliance on monetary and fiscal policy. Active contra-cyclical policy must be a priority item on our agenda and global markets are looking to see if we are united on this issue," he said. The agenda at the summit concluded with pumping of US$ 1.1 trillion into International Monetary Fund for providing stimulus for the revival of world business, removal of protectionist measures raids on tax havens and strengthening the global financial system through supervision. Dr Singh reaffirmed India’s commitment to the said agenda and promised that more free trade agreements would be arrived at with countries. This would facilitate setting up of businesses in India and thereby improve the foreign direct investment flows. Recent industry research by IDC too reveals the growing optimism of Indian Chief Information Officers (CIOs) on bucking the economic slowdown and rejuvenating the economy earlier than anticipated. http://www.ibef.org/

After the announcement of the fiscal stimulus packages, the first of which was unveiled in December 2008, the Indian economy has started recovering. Changes in government policy with regard to foreign direct investment, among others, have changed the economic climate. Cabinet secretary K M Chandrashekhar said "I think we are seeing the first clear signs of a turnaround. The spending on flagship and infrastructure programmes and steady hikes in MSPs for wheat and rice seem to have kept the economy afloat, driving demand," he said. Industry research reveals the following sector trends: Cement: According to industry resources, the cement sector has grown 9.97 per cent in December 2008 as compared to November and the year on year increase is 11 per cent. Cement and steel are seen as key drivers and with the construction sector, and have a significant impact on the growth sentiment. Automobiles: According to industry research, in January 2009, the passenger vehicles sector showed a 32 per cent rise over December 2008 whereas the increase for commercial vehicles is 23 per cent over a similar time frame. The sector has been attracting investments, especially foreign direct investment from companies such as Mercedes Benz. FMCGs: The trends in this sector reveal that the sector has been recording growth. There is a record growth in year on year terms at 26.4 per cent for the quarter ended December 31, 2008, according to a top bureaucrat. http://www.ibef.org/

It is official ! India is happening. With an economy growing at the rate of 9 per cent, business opportunities in India are increasing more than ever before. So much, so that Investors around the world are making a beeline for doing business in India. The FDI Confidence Index 2007 by A T Kearney shows India as second most attractive destinations for foreign direct investment. Obviously, opening up of the market in the beginning of the nineties is paying dividends. Higher income generated at the bottom of the pyramid has fuelled the high octane growth of business opportunities in India across all sectors. Lion share of the business opportunities in India exists in the knowledge intensive industries like, Information Technology. Its enormous talent pool available at a reasonably low cost helps India to edge out the competition. According to a NASSCOM-Deloitte study, this sector has contributed 5.2 per cent of India GDP in 2007. Some other sectors that offer maximum business opportunities in India are: Telecom: Five leading telecom companies in the world have already invested large amounts to cash in the business opportunities in India’s telecom market. The sheer population of India reflects the growth potential of the segment. Oil and Gas: With a 25-50 per cent lower capital cost alongside the strategic location on the route of Middle East crude for East Asian and Pacific-rim markets India is fast emerging as the global hub for oil refining. Infrastructure: Growing at a rate of 8.6 per cent (2006-7), this segment offers tremendous business opportunities in India. Retail: India tops the AT Kearney annual Global Retail Development Index (GRDI) for the third consecutive year, maintaining its position as the most attractive market for retail investment. Apart from the above, huge business opportunities in India lie the sectors like, financial services, healthcare and real estate. In the post reforms period, setting up a business in India, is not a worry at all. The elimination of license raj has been able to cut off bureaucratic red tape to much extent. The liberal regime has shaped up an investor friendly economic climate over the years.