NDIAN ECONOMIC NEWS

India to overtake China in growth by 2018: EIU
India will overtake China to become world's fastest growing economy by 2018, said the Economist Intelligence Unit (EIU), the research arm of London-based Economist magazine. Because of the favorable demography (higher percentage of working population) India's growth rate will continue to remain on the higher side, said senior analysts at EIU.

Economy to post 8.75% growth in 2010-11
Speaking on the sidelines of the Reserve Bank of India (RBI)-Organisation for Economic Co-operation and Development (OECD) workshop, Union Finance Minister Pranab Mukherjee, has said that the economy would grow by close to 7.2 per cent in the current fiscal, and the country was forecast to grow between 8.25 per cent and 8.75 per cent in the 2010-2011 fiscal.

S&P's revised India rating to drive investment: PMEAC
Global ratings major Standard & Poor's (S&P) has revised upward the ratings outlook for India to 'stable' from 'negative'. According to the Prime Minister's advisory panel the upward revision of the country's rating outlook to stable would foster investment inflows. According to Prime Minster's Economic Advisory Council (PMEAC) Chairman, Dr C Rangarajan, the improvement in the outlook assigned by S&P will make the country a better investment destination. He added that the improvement in S&P rating comes on the back of fiscal consolidation indicated in the budget, which will lead to substantial reduction in fiscal deficit for the next year.

Turnover of commodity exchanges up 50%
On the back of an increase in the participation of agriculture and other commodities, the turnover of 23 commodity exchanges posted 50 per cent year-on-year growth in the April-February period of the current fiscal, to touch US$ 1.53 trillion, according to the commodity markets regulator, Forward Markets Commission (FMC). Data released by the FMC showed that future trade in farm items including soy oil, mustard seed, guarseed, soyabean, as well as commodities such as energy and crude oil, accounted for a large part of the business.

Credit growth exceeds central bank's target
Gaining traction from the economic turnaround, the annual growth in bank credit has for the first time exceeded the Reserve Bank of India's (RBI's) estimate of 16% for 2009-10, giving the regulator more room to raise policy rates to control inflation. According to latest data from RBI, loan disbursement by scheduled commercial banks, including regional rural banks, recorded 16.04% growth at the end of March 12, 2010, on a year-on-year basis. This is above RBI's projection of 16% credit growth in this financial year.

Auto industry records highest ever sales this financial year
The domestic auto industry is set to hit an all-time high sales figure of 12.2 million units in 2009-10, surpassing the previous sales record of 10.1 million units in 2006-07. The strong growth is in terms of passenger car volumes, two-wheelers and commercial vehicles. This also represents a growth of 25.48% over 2008-09 (9.7 million units). The phenomenal growth rides on the back of a low base, new launches - primarily in the compact car category - lower interest rates and the 4% reduction in excise duty as part of the fiscal stimulus.

Government approves establishment of National Knowledge Network
The government has given its nod to the establishment of the National Knowledge Network (NKN) which proposes to connect 1500 educational institutes around the country through a high-speed data communication network. The establishment of the network-with an outlay of US$ 1.32 billion-was approved by the Cabinet Committee on Infrastructure. The NKN would be implemented over a period of ten years by the National Informatics Centre.

Ports capacity to reach 1.5 billion tonnes by 2012: Minister
The annual aggregate capacity of ports in India will see a sharp rise by 2012, the Minister of Shipping, G K Vasan, has said. According to the minister, the annual capacity of the major ports will increase 74 per cent to reach 1 billion tonnes in the next two years. In 2008-09, their capacity was 575 million tonnes.

Education sector holds US$ 100 billion investment potential, say experts
The country's education sector presents an investment potential of US$ 100 billion over the next five years according to sector experts. The growth potential in the sector is driven by increasing demand for skilled professionals and need for infrastructure development.  The education sector could turn into one of the most preferred sectors for investment by venture capitalists and private equity players, as per sector experts. According to experts, enabling private participation in education, private players can have a significant role in the expansion of the sector.

India will become 2nd largest steel maker by 2012
India will become the world's second-largest steel producer by 2012, more than doubling its capacity of 57 million tonnes as part of push being given to assist overall infrastructure development, Steel Minister Virbhadra Singh has said.

IT / Telecom / Biotech News

India data centre services market to touch US$ 2.2 billion by 2011
The data centre services market in the country, is forecast to grow at a compound annual growth rate (CAGR) of 22.7 per cent over the period between 2009 and 2011, to touch close to US$ 2.2 billion by the end of 2011, according to the research firm IDC India. The IDC India report stated that the overall India data centre services market in 2009 is estimated at US$ 1.39 billion.

ITsAP is likely to see 20% growth in exports in FY11
The IT and ITeS Industry Association of AP (formerly Hysea) is anticipating a growth of about 20 per cent in exports from Andhra Pradesh in the next financial year, according to its president Narasimha Rao. Software exports from the state touched Rs 32,500 crore last year and according to an estimate, the figure crossed Rs 30,000 crore this year in December.

MobileOne expanding into West Asia, Latin America
Hyderabad-based, mobile application development company MobileOne Infocom is looking to tap venture capital funding of $2 million as part of expansions into West Asia and South American markets this year.

Biocon arm in pact with Endo Pharma
Syngene International, the custom research subsidiary of Bangalore-based biopharmaceutical company Biocon Ltd, has entered into a discovery and development collaboration with Endo Pharmaceuticals of the United States to develop biological therapeutic molecules against cancer. Under the agreement, Endo will retain all rights to the molecules developed, while Syngene International will receive research fees, milestone payments and success fees from Endo. Endo Pharmaceuticals is a specialty pharmaceutical company in pain management. The company is engaged in the research, development, manufacturing, marketing and sales of branded and generic pharmaceutical products used primarily to treat and manage pain.

Elder Pharma increases stake in Bulgarian arm
Elder Pharmaceuticals today said it had increased its stake in Bulgarian subsidiary Elder Biomeda AD to 61 per cent from the present 51 per cent, as part of its strategy to strengthen its presence in the European market.

Corporate News

Wallstabe & Schneider, Divekar JV to shift base to Vadodara
German automotive components company Wallstabe & Schneider has established its Indian presence by signing a joint venture (JV) agreement with Thane-based Mecnam Products and Mumbai-based Deshmukh Rubber Works, both owned by the Divekar Group. The JV company, Divekar Wallstabe & Schneider Precision Seals Ltd, will be based in Vadodara and manufacture O-Rings, precision seals and bonded rubber components for a predominantly automotive customer base. 

Bombardier to open support office in Mumbai
Bombardier Aerospace is opening a regional support office in Mumbai from April to cater to the needs of its business aircraft costumers in the country. This will be the company's fifth new support office for the business jet customers in the past three years worldwide. The other four are in Tokyo, Sydney, Shanghai and Munich.

Nissan-Renault's plant near Chennai inaugurated
The new car factory set up by Nissan of Japan with its French partner, Renault, at Oragadam near here was inaugurated today in the presence of state Chief Minister M Karunanidhi. Carlos Ghosn, chief executive, Renault-Nissan Alliance, said the new plant would manufacture 200,000 cars, half for the export market, by 2012, and 400,000 by 2014.

Shree Renuka buys 51% in Brazil sugar firm
Shree Renuka Sugars, among the country's largest sugar producers, has signed an agreement with Brazilian conglomerate Grupo Equipav to buy a controlling 50.79 per cent in Equipav S A ACUCAR e ALCOOL (Equipav) for Rs 1,530 crore or $329 million.

Local diamond companies seal deals worth $490 million with Alrosa
Three local diamond manufacturers - Rosy Blue, Diamond India and Ratilal Becharlal and Sons inked deals totalling $490 million with Alrosa, Russia's largest diamond miner, for the supply of rough diamonds over a three-year period. The deals were signed in New Delhi, and are the first of their kind in terms of size of the contracts between a few Indian companies directly with a miner, said an official from Gems & Jewellery Export Promotion Council.

Fortis buys 24% in Singapore healthcare giant
Fortis Healthcare today announced the largest overseas acquisition by an Indian company in the healthcare space, buying the entire 23.9 per cent stake held by TPG Capital in Singapore's Parkway Holding Ltd for $686 million (Rs 3,119 crore). Fortis is India's second-largest healthcare provider after Apollo Hospitals and Parkway is Asia's biggest hospital operator by sales. The acquisition would form Asia's largest hospital chain with over 10,000 beds across 64 hospitals in six countries

Xerox Corp opens India Innovation hub in Chennai
Xerox Corporation - a $22 billion global enterprise for business process and document management - has opened its India innovation hub at the Olympia Technology Park in Chennai.

Lotto to invest $10 million in India
Italian sportswear maker Lotto is planning to spend $10 million over the next five years to corner 7% of India's branded sports apparel and equipment market.

ICICI Bank gets full bank status in Singapore
The country's largest private sector lender, ICICI Bank, has received qualified full banking (QFB) privileges from the Monetary Authority of Singapore (MAS) for its branch operations in the city-state, the Indian lender announced.

India-Israel Initiative for Industrial R&D
i⁴RD the India-Israel Initiative for Industrial Research and Development is a government bilateral framework providing active support for collaborative R&D ventures between Indian and Israeli companies. The bi-lateral framework is jointly implemented by Global Innovation and Technology Alliance (GITA), an initiative of Department of Science & Technology of the Ministry of Science & Technology in India (DST), and Confederation of Indian Industry (CII) on behalf of Department of Science & Technology, in India and MATIMOP, Israeli Industry Centre for R&D, on behalf of the Office of the Chief Scientist (OCS) in Israel.

Call for Proposals for Joint Industrial R&D projects (ICT)   March 2010
This call is open to ICT projects based on merit that include science and technology (S&T) development leading to commercial success, social good and benefit to both countries. The specific emphases to be covered under ICT are:

• Telecommunication & Broadband
• Semiconductors
• IT - Hardware & Software
• IT - Infrastructure
• Internet

The present Call is launched on March 1, 2010 and invites applications in Common Application Format in ICT till May 31, 2010. The eligibility of each application will be analyzed by DST/GITA and MATIMOP. Acknowledgement and the results of project consideration will be notified to all the applicants by respective Implementing Organizations latest by June 10, 2010.

                         FOR FURTHER INFORMATION PLEASE CONTACT

Forthcoming Events in India

Convergence India March 23-25, 2010, New Delhi www.biztradeshows.com

IT India March 26-29, 2010, New Delhi www.biztradeshows.com

Aerodrome India April 8-10, 2010, Mumbai www.biztradeshows.com

India Packaging Show April 9-12, 2010, Hyderabad www.biztradeshows.com

Chemspec India April 15-16, 2010, Mumbai www.biztradeshows.com

World Tobacco India April 21-22, 2010, Hyderabad www.biztradeshows.com

Power Gem India April 21-23, 2010, New Delhi  www.biztradeshows.com 

Gears Motors & Controls Expo May 6-9, 2010, Mumbai  www.biztradeshows.com 

India International Sign Show May 7-9, 2010, Mumbai  www.biztradeshows.com

Automotive Engineering Show May 14-17, 2010, Chennai  www.biztradeshows.com

Communications India May 20-22, 2010, Bangalore  www.biztradeshows.com

Business Offers for Israeli Companies

Address & contact details of the Commercial Wing, Embassy of India:

140 Hayarkon Street, Tel Aviv 63451 - P.O. Box 3368, Tel Aviv 61033.

Tel: 03-5291999; Fax: 03-5270821;

E-mail: eoitlvcom@indembassy.co.il

Please visit our website: www.indembassy.co.il