FDI in services sector up 5% in April-Oct
India’s foreign direct investment ( FDI) inflows into the services sector increased by a mere 5 % to $3.6 billion during the April-October period of this financial year, according to the latest data of the industry ministry.
The financial and non-financial services sectors had attracted FDI worth $3.42 billion during the same period last year. As far as overall FDI inflows are concerned, they declined by about 27 % during the first seven months of the current financial year to $14.78 billion, from $20.29 billion in the year-ago period.
In 2011-12, foreign investment in the services sector, which contributes over 50 % in India’s gross domestic product, rose to $5.21 billion from $3.29 billion in 2010-11.
The other sectors which have received high level of FDI during the first seven months of current fiscal include hotel and tourism ($3.11 billion), metallurgy ($1.21 billion), construction ($691 million) and automobile ($743 million).
(Sources: Business Standard, Hindustan Times, Indian Express, Financial Express, Hindu Business Line)
Jewellery exports lose sheen in November, down 3.7% at $2.78 billion
After declining about 20 per cent in October this year, India's gems and jewellery outward shipments managed to check a sharp decline but still reported a 3.7 % drop at $ 2.78 billion in November.
Exports of these items stood at $ 2.89 billion in November last year, according to the data provided by the Gems and Jewellery Export Promotion Council (GJEPC).
The major markets for the country's gems and jewellery include Europe, the US, the UAE and Hong Kong.
During April-November this year, gems and jewellery exports declined 12 % to $ 25.4 billion compared to the same period last fiscal.
Gems and jewellery exports sector, which employs 1.5 million people, constitute 17 % of India's total exports. During 2011-12, exports of these items were reported at $ 43 billion.
(Sources: Financial Express, Economic Times, Indiatimes, i4u, Moneycontrol, NDTV)
Plan panel sets $100 billion target for pharma sector by 2020
The Planning Commission has set a target for the Indian pharmaceutical industry to reach $ 100 billion by 2020 and account for 5 per cent share of the global drug industry in the next five years.
According to the final draft for 12th Five Year Plan (2012-17) by the panel, the objective of the sector will be to cross the $ 60 billion mark in 2017, which will be 5 per cent of global pharma industry.
Currently, the Indian pharmaceutical industry is valued at $ 22 billion and is the third largest in terms of volume and 13th in terms of value globally.
(Sources: Business Standard, Indian Express, Economic Times, Indiatimes, Business Today)
Lenovo India eyes 15% mkt share in large enterprise biz
Leading PC maker Lenovo is looking to increase its market share in the Large Enterprise business segment to 15 % by 2013.
The Large Enterprise business segment, targetted at companies having 500-1,000 employees, is part of Lenovo India's relationship business (REL) which currently contributes to around 40-45 % of company's total revenues in the country.
Lenovo is a USD 30 billion personal technology company and the world's second largest PC Company, serving customers in more than 160 countries.
(Sources: Financial Express, Economic Times, Indiatimes, Times of India, Indian Radios, i4u)
Honda bets on diesel cars, localization
Having ended its partnerships with Indian firms — for two-wheelers in 2011 and cars in August this year — Japanese auto giant Honda Motor is working on a twin strategy for the Indian market.
It plans to capture the top slot in the two-wheeler segment, where it is present through Honda Motorcycle & Scooter India (HMSI), and replicate the same success in cars by foraying into diesel engines. While the company’s growth in the two-wheeler space has been impressive since the break-up with the Hero Group, the company saw its sales plummeting in cars mainly because it does not offer a diesel variant. Also on the cards is a higher level of localisation to bring about competitive pricing.
The company's FY12 sales were up 28.68% to 1.99 million units, outperforming the growth of the two-wheeler industry, which grew 14.16% to 13.43 million. Erstwhile partner Hero MotoCorp's sales grew 15.18% to 6.06 million during the same period.
(Sources: Financial Express, Economic Times, Indiatimes, Zeenews, IBNLive)
100% FDI gets green light for rly line projects
Foreign direct investment is set to flow into the building of “fixed railway infrastructure”, ending a long-preserved policy of allowing only Indian Railways to set up these facilities out of its internal accruals or budgetary and other support.
Private investors, ports, export/import companies, “other investors” and FDI will now be allowed in the railway lines meant to connect ports, industrial and logistical parks, and mines with other parts of the country. The railways will either award these projects (construction and maintenance) on nomination basis or select the investor through competitive bidding. A revenue-sharing model has already been worked out.
The move is expected to give a boost to a sector where infrastructure expansion will provide direct, tangible benefits to the economy. However, no FDI is allowed in these PPP projects and is limited to only manufacture of components.
(Sources: Financial Express, Indian Express, Moneycontrol, NDTV, Hindu Business Line)
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