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SUSTAINABILTY ASPECTS OF FOREIGN TRADE CRUCIAL FOR INDIA'S DEVELOPMENT Thesynergyonline Economic Bureau NEW
DELHI, JULY 3 : He was addressing a workshop organised by CUTS in New Delhi from July 1-2 ,2008. It was organised as part of a project entitled Grassroots Reachout and Networking in India on Trade and Economics, which is implemented in eight states with support from the Royal Norwegian Embassy in India and Oxfam Novib of the Netherlands.
“A lot has changed in India since mid-80s and it would be interesting to learn and share the international perspective on India’s reforms especially in comparison with China and even Russia,” said Arne Melchior, Senior Researcher of the Norwegian Institute for International Affairs, which is an institutional partner of this project.
More than 50 stakeholders from various parts of the country assembled to discuss and debate the findings of research carried out on the level of stakeholders’ participation, particularly those at the grassroots, in the formulation and implementation of India’s foreign trade policy. Jayati Srivastava of Jawaharlal Nehru University and the principal researcher of this work argued that there is not much awareness among the stakeholders, particularly primary producers, on various benefits that this policy can generate. “While large exporters are aware of various schemes, the Government has to ensure a better linkage between this policy and small exporters and primary producers,” she said. In future this policy should be formulated by following a process of wider consultations with the primary producers, community-based organisations and civil society organisations, and the state governments, she emphasised.
According to R. S. Ratna, Professor at the Centre for WTO Studies of the Indian Institute of Foreign Trade, “While this initiative to conduct policy research is unique and commendable, the focus of future research, apart from linking this analysis to social dimension, must be on the economic impact of this policy.” He affirmed that while the role of the civil society organisations is recognised by the Government as essential, the need is for them to conduct and present the research findings with facts and figures so that the Government takes them seriously. He supported the demand for including the civil society’s voice the formulation and implementation of the next foreign trade policy, which is due in 2009.
The presentations at the workshop highlighted that the 5-year Foreign Trade Policy of India was adopted when it was realised that Indian products have to be made more competitive in the global market. “The focus must be on encouraging the production of exportable commodities; not just for exports,” said Sanjeev Chopra, Secretary of the Department of Agriculture of the Government of West Bengal.Analysing the export trends of targeted products under the foreign trade policy, Siddhartha Mitra, Research Director of CUTS said that while primate facie it appears that the economic impact of this policy in terms of generating new exports is positive, much in-depth research is required to understand its social and environmental sustainability. (npsinha@thesynergyonline.com)
INDIA'S
MAY TRADE DATA SUGGEST INCIPIENT SIGNS OF SLOWDOWN Thesynergyonline Economic Bureau NEW
DELHI, JUNE 3 : Rising rising export prices have been exaggerating the value growth in exports, and therefore the slowdown in export value growth in May suggests an even lower growth in export volumes, data for which are not available. Further, we judge that the slower export growth could partly be explained by the ban on exports of some food, metal and mineral items as part of the fiscal and supply-side measures undertaken by the government to tame domestic inflation.
The import growth also moderated to 27.1 per cent y-o-y in May (Lehman: 30.5%) from 36.6% in April. The oil import bill surged 50.8% y-o-y in May from 46.2 per cent in April led by rising oil prices, but non-oil imports grew at a much slower pace of 17.4 per cent from 32.3 per cent, suggesting some possible moderation in investment activity in the economy and as a result, the trade deficit widened to a record high of US$10.8bn in May from US$9.9 billion in April . The slowdown in both exports and non-oil import growth is consistent with our view that economic activity is likely to moderate going forward. We expect the trade deficit to widen to 9.7% of GDP in FY09 from 7.7% in FY08, as export growth slows due to weakening foreign demand and firm oil prices keep overall import growth strong .
GLOBALLY LEADING ORGANISATIONAL DEVELOPMENT AND MANAGEMENT GURU DR JANELLE BARLOW TO VISIT INDIA Thesynergyonline Economic Bureau NEW
DELHI, JULY 2 :
Dr. Barlow has inspired over 100,000 people with her training programs, workshops and is a sought-after speaker on Customer Service and Service Recovery. She was twice awarded the prestigious “International Trainer of the Year” award by TMI. She has also earned the designation of Certified Speaking Professional from the National Speaker’s Association in USA . In Addition, she is also an author of several best selling books such as ‘Branded Customer Service: The New Competitive Edge’ that was called “The Bible of Branding” and ‘The Stress Manager: A Practical Guide to Optimum Health and Performance’. In addition, she is the co-author of ‘Emotional Value--Creating Strong Bonds with Customers’ and ‘A Complaint Is A Gift (ACIAG)--Using Customer Feedback as a Strategic Tool’.
‘A Complaint Is A Gift’ is a critically acclaimed book , which has received a lot of appreciation and recorded the sales over 200,000 copies in the first year. The book has been translated into 21 languages and has dramatically impacted organizations around the world that have applied its principles.
Deepak Mohla, MD TMI India and InspireOne said, ‘Janelle will be addressing the top management personnel from the leading corporates. Her visit becomes even more strategic and timely given the current market scenario. Most organizations are now looking at customer loyalty, apart from acquisition, as a key driver for growth. In order to achieve this, the top management needs to create a culture where the customer is the centre point of all strategic decisions. Janelle’s seminar on Inspiring Customer Centric Cultures will help them work towards this.
She will lead one-day seminars in New Delhi on July 8, Mumbai on July 10 and Bangalore on July 11 and will introduce her latest Service Recovery Map that can be used by organizations to listen and align to customer expectations, thereby inspiring customer centric cultures. She would be reaching India on July 2, 2008 and will leave on July 12, 2008.
Janelle is the author of the bestselling business book A Complaint is a Gift, published in 21 languages with over 200,000 copies sold. Since the book first came out twelve years ago, the response to Janelle’s approach to complaints in the marketplace has been overwhelming. The original book has been adopted as the standard mind-set for hundreds of organizations in dozens of industries around the world.
She is an entrepreneur and author, plays classical piano, and is an award-winning photographer. Janelle is CEO of Branded Customer Service and the President and owner of TMI US , a partner of TMI International with offices in 43 countries worldwide.
Her Ph.D. was earned at the University of California at Berkeley . She has two master’s degrees, one in International Relations and another in Psychology. Her business is a certified WEBNC woman-owned enterprise. (npsinha@thesynergyonline.com) INDIA'S CURRENT ACCOUNT DEFICIT AT US$1 BILLION Thesynergyonline Economic Bureau NEW
DELHI, JULY 1 : Despite portfolio outflows, the net capital account surplus stood at US$25.4bn in Q1, buoyed by inflows from banking capital, net foreign direct investment inflows, short-term trade credit and external commercial borrowings. The current account deficit is likely to widen to 3.0 per cent of GDP in FY09, as export growth slows due to weakening foreign demand and firm oil prices keep import growth strong. Capital inflows are likely to cover this deficit, but further increases in oil prices could easily tip this balance. India posted a surprise current account deficit of US$1.0bn in Q1 2008 (Consensus: US$1.5bn, Lehman: US$0.4bn) from a deficit of US$5.1bn in Q4. Even though India is a current account deficit country, the first quarter has registered a surplus for the past seven years, because the trade deficit has been more than offset by the seasonal surge in invisibles receipts . This year, however, a sharp surge in oil prices increased the overall import bill and widened the merchandise trade deficit to US$23.8bn in Q1, much higher than the invisibles surplus of US$22.8bn. In FY08, the current account deficit rose to US$17.4bn or 1.5 per cent of GDP from US$9.8 billion or 1.1 per cent of GDP in FY07. Within the capital account, portfolio outflows rose to US$3.7 billion in Q1 from an inflow of US$14.7 billion in Q4, because of the global financial market turmoil (Figure 2). But this swing was offset by an increase in banking capital (US$5.8 billion in Q1), net foreign direct investment (FDI) inflows (US$6.4 billion), short-term trade credits (US$6.3 billion) and external commercial borrowings (ECB) (US$4.8 billion). This boosted the total capital account surplus to US$25.4 billion in Q1 and US$108.0 billion or 9.2 per cent of GDP in FY08. Overall, India posted a balance of payments surplus of US$92.2 billion in FY08 from US$36.6 billion in FY07 and total valuation gains rose to US$18.3 billion from US$11.0 billion because of dollar depreciation against major currencies. Going forward, we expect the current account deficit to double to US$38.5 billion or 3.0 per cent of GDP in FY09 from 1.5 pper cent in FY08, as export growth slows due to weakening foreign demand and firm oil prices keep import growth strong. Oil prices will average US$112/bbl in FY09, the oil import bill is likely to surge to US110 billion in FY09 from US$77 billion in FY08. The capital account surplus is likley to halve to US$56.7 billion in FY09 from US$108 billion in FY08, because of moderating portfolio flows and lower external commercial borrowings. This should still be sufficient to cover the current account deficit and post a moderate balance of payments surplus of US$18.1 billion in FY09. However, oil prices are the key risk to India’s balance of payments surplus this year and further increases in oil prices can easily tip this balance. (npsinha@thesynergyonline.com) ENGINEERING SERVICES OUTSOURCING MARKET LIKLEY TO TOUCH US$ 40 BILLION BY 2015 Thesynergyonline Economic Bureau
MUMBAI,
JULY 1 : Another
attractive factor for these global manufacturers is low labor
cost along with quality; one of the main reasons that makes
India a major outsourcing destination.Indian engineering service
providers are technically proficient and have a fervent eye
for detail ensuring that service levels remain better than
competing countries. Most
of the Indian engineering services providers are at par with
competition and offer an array of services, which include
computer aided design (CAD), computer aided manufacturing
(CAM), computer aided engineering (CAE) while vertical To
target the maximum potential from engineering service providers
and automotive manufacturers, there is a need to address key
issues like quality manpower, low cost services and put India
on the global market as an engineering service provider. Frost
& Sullivan is organizing a two-day highpowered MindXchange
to address these issues through its summit “Opportunities
in the Automotive Engineering Services Outsourcing Market”
to be held on the 11th and 12th August, 2008 at the Leela,
Goa.The summit seeks to understand and discuss the growth
needs of companies inthe engineering services outsourcing
as well as the automotive industry byfostering common understanding
of business needs and opportunities that could lead to business
partnerships. This forum endeavors to nurture strategic business
decisions by bringing together key decision makers and thought
leaders from the domestic and international automotive industry
and engineering services companies. Eminent
speakers such as, Dr. Arun Jaura, Mahindra & Mahindra;
Tarak Balaji, Delphi; Vivek Narayanan, Pierburg; S. D. Pradhan,
Argentum Motors; and senior representatives from Satyam Ventures,
BMW and many more are expected to be Satyam
Ventures is the event partner and Auto Monitor, Autocar Professional,
Dataquest and The Machinist are the media partners for the
event. (npsinha@thesynergyonline.com) GLOBAL REAL ESTATE TRANSPARENCY INCREASING IN NEARLY HALF OF COUNTRIES : JONES LA SALLES INDEX Thesynergyonline Economic Bureau MUMBAI,
JULY 1 : In some countries, particularly in emerging markets, notable differences can be observed in transparency not only between cities, but within cities as well. Anuj Puri, Chairman and Country Head India, Jones Lang LaSalle Meghraj says,, "In India, the issue of real estate transparency at a sub-national city level is gaining importance as real estate investors and corporate occupiers extend into new regions in their search for higher returns or cost-effective locations. International investors and occupiers are moving into secondary and tertiary cities that have not been traditional targets of the real estate community." The Index, which provides a rigorous framework for comparing the level of real estate transparency in 82 markets around the world, shows that nearly half of the countries surveyed in 2006 demonstrated a significant improvement in their transparency score two years later. Transparency levels globally are improving as governments seek to streamline regulatory and legal hurdles to aid cross-border movement of capital and corporate facilities. Only Venezuela posted a lower transparency score this year compared with 2006, principally due to changes in government regulations and new taxation policies targeting foreign investors. In keeping with historical results, the Australian and US real estate markets remain among the most transparent in the world. With the addition of new variables relating to the quality and frequency of valuations, service charge transparency and financing transparency, Canada now ranks as the world's most transparent commercial real estate market (see Table 1). Jacques Gordon, Global Strategist at LaSalle Investment Management says, "The steady improvement in transparency, particularly over the last four years, is closely linked to the forces of globalisation that drive investors to move across borders in search of higher risk-adjusted returns. This movement of both capital and corporations around the world has created an even greater need for information about markets. It has also created an incentive for governments to streamline bureaucratic practices which prevent the free flow of capital into and out of global markets." "Many cross-border investors focus on more mature, open and transparent real estate markets such as the UK, Canada, Netherlands and Hong Kong. However, opportunistic investors will consider the emerging, less mature, less open and semi-transparent markets, but will require higher returns to compensate for the higher risks associated with lower transparency. Only the most opportunistic investors will consider semi-transparent markets found in Eastern Europe, Latin America and Southeast Asia. Opaque markets, such as Algeria, Belarus and Cambodia, are still very problematic, from the perspective of both investors and corporate occupiers." "Overall, increases in the free flow of capital, tenants, management and market information are closely coupled with the rising productivity of real estate in countries with improving transparency. This productivity can be measured by investment returns and in terms of corporations' ability to provide efficient workspaces, logistics facilities, retail environments, and business and leisure centres for travellers and domestic markets alike. While many emerging markets have made improvements to their real estate transparency, our index shows that not all governments and market participants have embraced the necessary changes." The Index shows that 28 countries posted transparency scores that were within 10 basis points of their scores in 2006. Jones Lang LaSalle researchers say that consistency in transparency scores over the years is expected in real estate markets such as Australia, the UK, the US, Singapore and Hong Kong where a high degree of transparency already exists. However, countries such as Argentina, Greece, Indonesia, and Peru have consistently scored in the low transparency range over the last few years despite an increase in cross-border trade, finance and commerce over the same time period. A number of countries in the 'frontier markets' have been included in the Index for the first time, with Belarus, Sudan, Algeria, Cambodia and Syria scored as 'opaque'. Other new entrants into the Index, Bahrain, Bulgaria, Estonia, Latvia, Croatia, Abu Dhabi, and Lithuania, scored in the 'semi-transparent' range, while Oman, Qatar, Morocco, Kuwait, Pakistan and Kazakhstan all scored in the 'low transparency' range. In Asia Pacific, transparency has improved across most of the region since 2006; however, the gains are relatively modest for most countries, particularly when compared with the larger improvements between 2004 and 2006, and the more recent gains in Europe and Middle East and North Africa. The biggest improvers in Asia Pacific are India, China and Vietnam, all of which have received considerably greater attention from investors and corporate occupiers in recent years. China exhibited the greatest improvement, moving up to the semi-transparent tier (Tier 3) and is now considered more transparent than India. Notwithstanding this, the two emerging giants of the region remain very close in terms of overall real estate transparency. Dr Jane Murray, Head of Research, Asia Pacific at Jones Lang LaSalle says, "Where improvements are observed, a key reason has been the increased availability of data on major market fundamentals, particularly for the office sector. The growth of the REIT sector has also had a further positive impact on improving financial disclosures across the region, building on gains observed between 2004 and 2006. In relation to the impact of government, the processes surrounding compulsory acquisition of real estate by the public sector have also become more transparent over the two years." "At the other end of the spectrum, there is room for improvement in the availability of indices relating to the investment performance of real estate assets, and those based on unlisted real estate vehicles. As Pan Asian real estate funds become more prominent within global investment portfolios and institutional ownership increases in developing markets, more indices should become available. Some regulatory factors, such as the consistent application of taxes, building and planning codes, and enforceability of contracts, remain areas of concern in a number of markets. Aspects of the real estate transaction process also remain wanting in some countries," adds Dr Murray. "It is important to note that transparency enhancements should not be viewed as the sole determinant of regional capital flows, instead market fundamentals appear to be the main driving force behind transaction volumes, as we can see from the solid increases in cross-border transaction volumes in Japan and Korea over the past two years, though the two countries recorded minimal improvements in transparency. Nevertheless, higher transparency is resulting in a more dispersed flow of capital between countries across the region. It is therefore noteworthy that most of the countries surveyed are continuing to improve on the transparency measures, and as a result, enhancing the attractiveness of these markets for real estate investors and occupiers," concludes Dr Murray. The impact of the additional criteria included in the 2008 Transparency Index is typically a minor fall in the score for the more transparent markets and a minor improvement in the score for the less transparent markets. For the composite score, which includes the additional criteria, Hong Kong and Singapore moved slightly down to the top of the transparent tier. However, the overall ranking for countries is not impacted when the additional measures are included in the Index. Jones Lang LaSalle warns that a high level of transparency does not eliminate risk or guarantee a strong investment return or efficient corporate transaction. High transparency does not prevent market swings as the most transparent commercial real estate investment vehicles - listed real estate securities - can also exhibit volatility. The 2008 Real Estate Transparency Index added several new dimensions and the addition of 26 new countries. New transaction process measurements were included for debt financing commitment terms and fees, occupier service charges, and facilities and project management services and fees. The outcome of the transaction process measures may be helpful for corporations who need to understand total occupancy and transactions costs or institutional investors seeking to analyse broad market statistics and historical performance benchmarks. (npsinha@thesynergyonline.com) INFRASTRUCTURE SECTOR HIT BY ATTRITION Thesynergyonline Economic Bureau NEW
DELHI, JUNE 30 : This has created good and sound employment prospects for over 40,000 professionals and others in energy and steel sector which would also witness fresh investments in thousands of crores, adds the ASSOCHAM analysis. Releasing
the Chamber’s finding, its President, Mr. Sajjan Jindal
said that a large number of ASSOCHAM constituents in energy
sector and the entire steel alliance are reporting shortages
of experienced, skilled and qualified professionals to an extent
of 40 per cent as these sectors are “Opportunities
have galored for most of energy and steel professionals. The
major companies are experiencing the unprecedented attrition
rate which is also significantly contributing in increasing
the cost”, said the ASSOCHAM Opportunities
have galored for most of energy and steel professionals. The
major companies are experiencing the unprecedented attrition
rate which is also significantly contributing in increasing
the cost”, said the ASSOCHAM Chief.
The executives and below executive cadre of the aforesaid corporations and companies are getting ample opportunities, looking for greener pastures in view of opportunities that the energy sector expansion programme would provide for them with their counterparts in the private sector. For example, central utilities like NTPC which is likely to enter into equipment manufacturing and even power trading would create immense opportunities for career growth to power professionals and likely to attract skilled workforce from company like BHEL, the order book of which is nearly full. The work on four ultra mega power projects, with the estimated capacities of 16,000 MW is likely to be commenced from the second half of 2008 onwards and naturally call for skilled personnel and professionals. The power professionals would like to cash in on the existing opportunities for better future and would create sufficient space for attrition rates. The power sector from the second quarter of current fiscal onwards would require between 3,000 to 4,000 numbers of fitters and specialized welders, operational staff for cooling towers, ash handling plant as the sector is likely to commence its capacity expansion operations with greater vigor and commitment from next year onwards. In addition, power professionals recruitment number could go over 8,000-10,000. Apart from main plant equipment, huge augmentation of capacities is foreseen in the capacity of balanced plan equipment such as coal handling, ash handling Apart
from main plant equipment, huge augmentation of capacities is
foreseen in the capacity of balanced plan equipment such as
coal handling, ash handling and water treatment plants. In order
to supplement the manufacturing capacities of main plant as
well as balanced plants, there is huge requirement for development
of vendors, who will support their capacity expansion giving
rise to large scale employment generation.
Rural electrification programme would also receive a fillip in view of forthcoming states and parliamentary elections and would also require personnel to achieve 100% electrification programme for the corporation. This sector is likely to create job opportunities for thousands of workforce and add to attrition rates, added the ASSOCHAM Chief. Referring to petroleum sector, the ASSOCHAM assessment says that domestic hydro carbon discovery and its refining sector would witness large capacity additions from 2008 onwards in view of growing shortages of crude oil. The target for the capacity expansion in the refining sector would take off from 149 million tones to 235 million tones in next couple of years which will require recruitment of petroleum engineers, drillers, physicians, geologists, geo-physicists besides executives. As far as steel sector is concerned, almost each company whether in state or private sector has drawn up capacities expansion plan and finding it extremely difficult As
far as steel sector is concerned, almost each company whether
in state or private sector has drawn up capacities expansion
plan and finding it extremely difficult to engage professionals
as they are in utter shortages, says Mr. Jindal who himself
is the 3rd ranking steel maker. (npsinha@thesynergyonline.com)
Thesynergyonline Economic Bureau NEW
DELHI, JUNE 29 : These findings are arrived at a random survey done under ages of the Social Development Foundation of ASSOCHAM on “Rising School Expenses vis-a –vis Dilemma Of Young Parents” also highlight that as school expenses excluding tution fees have risen from Rs. 25,000 in 2000 to Rs.65,000 per annum in 2008 and that too on a single child. While the annual income on an average of well off parents have risen not by more than 28 per cent to 30 per cent during the period, says Secretary General, ASSOCHAM Mr. D S Rawat. In the random survey, nearly 2000 working parents were interviewed in cities like Delhi, Mumbai, Lucknow, Dehradun, Pune, Bangalore, Kolkata, Chennai Chandigarh etc by the ASSOCHAM research team in months of April-May 2008 in which it also came to limelight that 9 out of 10 parents find meeting their ward’s school cost ‘very’ difficult. These
expenses include uniforms, books, stationery, transport, sports
activities, school trips, contributions to upgrade schools,
school aids etc. The total expenses for learning would be many
times higher than school fees”, said Mr. Rawat.
Nearly
one in ten respondents indicated that the cost associated with
schooling has actually affected even their choice of school.
65 per cent of parents spend more than half their take-home
pay on their children's education, placing significant burden
on their family budget. More than Sixty per cent parents, however, complain that education is now being run like a commercial business enterprise. The high tuition fees no more justify the services offered at schools and the erratic fee hike effected each year by management of schools. An estimated over 30 million children are now educated in private schools, with fees usually rising well above inflation. Parents have to spend sleepness nights worrying about how they are going to pay for what their child needs simply to go to school. It is hitting their budget very hard and potentially having a direct impact on children’s schooling. Parents are especially concerned about schools that put pressure on parents to make so-called ‘voluntary’ contributions.” However, the cost of private day schools where yearly fees are on average Rs. 60,000 though they are considerably higher in Metropolitan Cities. Private prep schools for those aged 3 to 5 cost, parents spend about 25,000 a term. Transport is one of the most expensive components of a child's schooling. This costs parents an average of 12,000 per child per year. Parents spend 9,600 per child per year on lunches. Packed lunches cost more than school . Shoes cost parents 4,000 -5,000 per child per year. Footwear works out as being more expensive than textbooks. Branded footwear like Nike, Addidas, Rebook have taken place in today’s world. Schools are more conscious about the branded outfits. Parents of boys face a slightly larger total bill as these spend more on their after-school tution, clothes and clubs, sports activities. School costs have risen at more than double the rate of inflation and come amid warnings to parents to plan early for their child's education. Survey also shows that families having more than one kids that send their children to private schools will be hit the hardest. In the majority of cases, schools lay down specific uniform specifications, such as a crested jumper, a blazer or particular overcoat. Many schools require parents to purchase uniforms from a specific retailer. Very often, only one local retailer stocks and sells the uniform for a school, which means they can charge whatever price they choose in the absence of competition The average cost of tution fees for sending a child to private school is 35,000 per year. On average, private school parents spend an additional 30,000-35,000 per year on uniforms, extra curricular activities, textbooks, stationery, school fund, trips etc. (npsinha@thesynergyonline.com) GEO INDIA 2008 TO BE HELD FROM SEPTEMBER 17 TO 19 AT EXPO XXI , GREATER NOIDA Thesynergyonline Economic Bureau NEW
DELHI, JUNE 28 : "As
part of our global petroleum strategy, it is imperative that
ONGC (Oil & Natural Gas Corporation) is at the forefront
of latest developments and research in the oil and gas industry.
GEO India 2008 will provide such a forum to exchange ideas and
to develop on our technical awareness in the emerging South
Asian region", remarked Mr R.S. Sharma, Chairman and Managing
Director of the Oil & Natural Gas Corporation (ONGC). The
ONGC is the lead sponsor of the event and one of its largest
exhibitors, reflecting not only its position as the leading
oil and gas exploration company in Asia as per Platts 250 Global
Energy Companies listing for 2007, but also the fact Mr Sharma
is chairing the event. To date the ONGC has established 6.42
billion tonnes of in-place hydrocarbon reserves while also discovering
more than 300 oil reserves. India's emergence as an oil and gas hub has been driven in part by the government's encouragement of private investment to the market and also by the need to correct the country's dependence on imported energy. As
demand pushes supply, companies are investigating under-explored
basins in this region - with success - while also drawing on
advanced operational technology to explore for deeper reservoirs.
GEO India 2008 is therefore timely as it provides a unique platform
for companies to meet and learn about the latest technological
developments taking place in India while attracting 2500+ visitors
from a wide spectrum of geo-scientists, technology developers
and industry leaders. As
one of the biggest investors in the Indian oil and gas market,
it is no surprise that Royal Dutch Shell will have a sizeable
exhibiting presence at the event. Shell has plans for a multi-million
dollar research centre in the country which will span upstream
exploration and production activities as well as downstream.
Greg Lewin, President of Shell Global Solutions says: "We
are looking for the best talent and we are pleased with the
rich number of highly qualified applications that we are receiving.
We have developed a value proposition for our people, which
comprises a career in a global organization from an Indian base."
² Cairn,
a gas pioneer in the region, will have a showcase exhibit. To
date it has focused on exploration and production in India and
is currently working on 14 blocks, two of which are producing
hydrocarbons. Much of its exploration and production positions
lie along western and eastern India, along with new exploration
rights elsewhere in the country. Reliance, another exhibitor, discovered a super giant gas field off the east coast of India in 2002 which represented not only the world's largest gas discovery that year but also the first major hydrocarbon accumulation by an Indian private-sector company. This exploratory well was drilled in a deepwater block and since then all eight wells drilled in this block have proved productive. ENI India's General Manager, Franco Conticini, is a strong supporter of the event, remarking "Eni India is committed to execute and promote successful oil and gas exploration in India. We welcome GEO India 2008 in Delhi as a perfect opportunity for the leading geo-science professionals in India to sharpen their knowledge and to accelerate the flow of significant new discoveries from the Indian Basins". Sam Moharir, Regional Marketing Manager of ARAM Systems, also says "GEO India 2008 will no doubt give ARAM Systems Middle East FZE a competitive advantage to expand on our portfolio in India and to further explore upstream opportunities in South Asia." ARAM
Systems , Archimedes , Association of British Offshore Industries
,C&C Reservoirs , Chemostrat , GETECH , Energistics , Fugro
Geoscience India Pvt. Ltd Geo Mechanics International , GGS Spectrum
, Global Geophysical Resources (BOS) Halliburton , HGS India ,
Infoterra , ION , Labindia (Leica) , Nautilus Ltd NPA Group ONGC
, OYO Geospace , Paradigm , Premier Agencies , RPS Energy , Schlumberger
SDC Geologix , Sercel , Shell Exploration and Production International
, Suvira Group of Companies: Gore , Scan Geo, SMT, Specstraseis,Numerical
Rock , System Developments Inc , TDI Brooks International , Wavefield
Inseis , Weatherford will be participating in GEO India 2008.(npsinha@thesynergyonline.com) PHILIPPINE STOCK EXCHANGE , NYSE EURONEXT SIGN MoU Thesynergyonline Economic Bureau
NEW DELHI, JUNE 28 : NYSE Euronext CEO Duncan L. Niederauer and Philippine Stock Exchange (PSE) Chairman Jose C. Vitug on Friday signed a memorandum of understanding (MoU) that establishes cooperation between the two exchange companies to explore new opportunities in trading system architecture and technology, exchange traded products, market participant connectivity and market data management. The MoU, signed at the New York Stock Exchange observed by Philippines President, H.E. Gloria Macapagal-Arroyo, also covers the PSE’s intention to purchase new trading system technology from NYSE Euronext and its affiliates.
Under
the terms of the NYX-PSE MoU signed, areas of possible cooperation
involve the sharing of information and experience on new stock
markets products and services. The MOU also embodies the common
goal of both companies to provide investors worldwide protection
and operating fair, orderly and efficient markets. The MOU was
drafted in the spirit that international cooperation between the
two exchange companies will facilitate the development and efficient
operation of all securities markets operated by the exchange groups.(npsinha@thesynergyonline.com) Thesynergyonline Economic Bureau KOCHI
, JUNE 25 :
Mr L.Radhakrishnan, Secretary, Department of Power, Kerala while inaugurating the three- day international workshop on 'Cleaner production and Energy Conservation for Sustainability' organised by the Centre for Science and Technology of the Non Aligned Movement (NAMS &T) along with Society for Energy Engineers and Managers (SEEM) aid " Crude oil prices may reach $ 250 a barrel in next couple of years, forcing a shift from petroleum dependency to alternate energy 'inevitable' . Industry has to develop and adopt alternative energy and bring in a "clean technology revolution" by making it cheaper than oil".
"Developing technologies that use recycled water to produce electricity in microbial fuel cells and photovoltaic solar panels that can power individual homes and businesses, Kerala state is already ahead of other states and is expected to play lead role in bringing in "clean energy" for the nation " Mr Radhakrishnan said .
Prof. Arun P Kulshreshtha, Director, NAM S&T centre speaking on the occasion said "cleaner production involves technologies to reduce pollution, conserve energy, water and material resources which result in better and economical production and helps in improving employees health"
More than 150 experts from major NAM member countries including Cuba, Srilanka, Nepal, Malaysia, Indonesia, Egypt, Panama, Kenya, and South Africa are taking part in the three day International seminar to discuss their country experiences in energy saving and cleaner technologies.
Mr V.M.Trehan, Chairman, Mekaster , the first Indian company to be selected by Nam to promote Science and Technology in Member countries speaking on the occasion said " India with vast natural resources has vast potential to turn the fossil fuel world into a world of renewable energy,"
. "We have all the technology and data and the talent in India to make enormous contributions to the energy world. There are a lot of technologies that can be adopted from solar panels, low energy lighting, solar water heaters and small wind turbines on roofs." He added. (npsinha@thesynergyonline.com) FDIs TO FALL SHORT BY US$ 7-8 BILLION IN 08-09 Thesynergyonline Economic Bureau NEW
DELHI, JUNE 25 : The survey in which 400 CEOs opinions were polled on Realistic Assessment of FDI’s inflow towards India, 350 CEOs said that India could optimally receive about US$ 28 billion in 2008-09 against the target of US$ 35 billion. The reasons cited for lower FDI’s include adverse sentiments in the stock market, bottlenecks on infrastructure, government inability to sign nuclear deal, no initiatives on disinvestments, rising interest rates and volatility on economic and political front because of inflation and forthcoming elections. Nearly 300 CEOs held a view that services sector followed by computer software and hardware, telecom, construction activities, housing and real estate will respectively receive FDI’s in 2008-09 as happened in the last fiscal that came to an end on 31st March 2008. It may be mentioned here that the Ministry of Commerce had set the target of FDI’s in last fiscal for US$ 30 billion of which, the total FDI receive were to the tune of about US$ 25 billion. Ever since, the economy was opened up in July 1991, in the last 17 years, the total FDI’s received are estimated around US$ 61 billion. Releasing the survey, the ASSOCHAM President, Mr. Sajjan Jindal said that the financial year 2008-09 has begun with difficult time in which the inflationary pressures mounted beyond manageable limits, the adverse impact of which on Indian Inc. has been substantial in the sense that the yearly profitability of Indian industry would suffer a beating to an extent of 15-20 per cent. The sentiments are extremely negative as not only industrial production has been falling because of manufacturing sector not doing too well. No doubt, agriculture has done better and is expected to do still better because of anticipated good monsoon but agriculture alone doing well will not enhance the country’s GDP. Two
hundnnred and thirty CEOs held that mining, refining, petrochemicals
and petroleum sector including cement and steel have not been doing
well despite their demand in the market. This again will not augur
for well as their contributions According
to 280 CEOs, stock market will continue to remain in dampen mood
as large number of investors have shifted their investments to traditional
source of savings channels. All these factors put together do not
send good signals to investors especially overseas and their strategy
will be that of wait and watch in which the FDI’s will suffer
About 320 CEOs were of the view that foreign investors are keeping a watch on elections in four state and thereafter, their outcome and again the Parliamentary pool in 2009. Because of this, the volatility of the Indian political front will remain and investors would also like to take advantages of stable polity after 2009 comes to close. The
vast majority of CEOs have also felt that inflationary pressures
will continue to grapple the Indian economy as these expect further
rising of interest rates which will cause credit and liquidity crunch
in the Indian market as Indian industry would have no option, barring
learning to live with the current realities. This again will discourage
The survey recommends that government needs to take sufficient measures to remove bottlenecks on infrastructure and mount a pressure with necessary supports from various bilateral and multilateral agencies on oil producing countries for increased oil production. The oil prices will remain a big challenge and if these do not subside, its repercussion on international trade and economics will be severe for all economies of scale including those of developing ones. (npsinha@thesynergyonline.com) ECO-LABELS TO PROVIDE INDIAN TEXTILE EXPORTERS NEW VISTAS IN EUROPEAN MARKET , SAYS EC OFFICIAL Thesynergyonline Economic Bureau NEW
DELHI, JUNE 25 :
The event marked the first opportunity for national stakeholders to get information on eco-labelling opportunities and was a part of a project entitled 'Enabling developing countries to seize eco-label opportunities' funded by the EU and the German Federal Ministry for Economic Cooperation and Development. The project aims at providing technical assistance and building capacity of a wide range of national stakeholders to increase market access in developed countries and promoting more sustainable consumption and production patterns. In India, it specifically aims at supporting Indian industries in attaining the EU Eco-label for their products.
The EU Eco-label also called the “EU Flower” was introduced by the EU in 1992 with the aim of providing more transparency and information to consumers about environmentally preferable products. It is a broader strategy of the EU to stimulate sustainable consumption and production. Till date, there have been around 620 licensed companies with approximately 4000 EU Flower labelled products with a market value approaching a billion Euros. The licences are spread over a number of European as well as developing countries, namely Thailand, China, Indonesia and Egypt. The workshop provided textile industry stakeholders with knowledge of the EU Eco-label, the criteria and procedures that underlie its award and related market opportunities.
Addressing the workshop Shishir Jaipuria, Vice Chairman, CITI, while pointing to the mounting pressure on the textile sector to adopt more “eco-friendly” manufacturing processes, underlined the importance of textile producers in India going in for such environmental certifications to retain their market position. He said that obtaining an eco-label can also generate financial savings through process optimization and reduced consumption of raw materials and improved environmental performance. Pradeep S. Mehta, Secretary General, CUTS underlined the opportunities created by eco-labels as well as their potential misuse as non tariff barriers.
The presentations at the workshop highlighted that an increase in the market for home textiles and apparel in the EU, US and Japan is predicted due to the phasing out of production capacities in spinning and weaving in these countries. Since the EU Flower label is recognised by all EU countries, it makes market penetration easier, especially to major markets like Italy, UK, France, Germany and Spain. The workshop brought together relevant representatives of the textile industry and designers, textile associations, laboratories associated with textile manufacture, consumer and environmental organizations, EU and United Nations officials linked to the eco-label scheme, as well as academic experts and international industry representatives. (npsinha@thesynergyonline.com)
INDIA'S MONETARY POLICY IS THE FIRST LINE OF DEFENCE Thesynergyonline Economic Bureau NEW
DELHI, JUNE 23 : Fuel prices are the key driver: According to the Finance Secretary, about 94 per cent of the inflation in June was due to higher prices of fuel, both administered and non-administered. . Inflation momentum is moderating: The seasonally adjusted WPI index has fallen from 2.6% month-on-month (m-o-m) in March 2008 to 0.2 per cent (excluding fuel) during June 7. Food price inflation has declined; agriculture output is likely be good this year and even manufacturing inflation was low. Inflation outlook: The base effect for inflation is adverse in the coming months and with second round effects still ahead, inflation could move higher and would remain firm in the coming months. The seasonally adjusted m-o-m reading was expected to moderate. WPI inflation should come down to 5-6% y-o-y in a year's time and the key uncertainties to the inflation outlook were oil prices, US dollar and INR exchange rate movements. . Tools to fight inflation: The Finance Secretary said that they had no control over oil prices and there was a limit to using supply side measures to tackle inflation. We judge that this could be because more tax cuts would mean more revenue losses and any additional borrowing by the government is itself inflationary. Therefore, even though demand was not the cause of higher inflation, managing demand had to be a part of the solution and monetary policy would be the first line of defense against inflation [our emphasis]. Comment: The key takeaway from the press conference was further monetary policy tightening by the Reserve Bank of India (RBI), most likely before the next policy meeting, scheduled on July 29. The tightening could come in the form of a repo rate hike and/or cash reserve ratio (CRR) hikes. In addition, there were some hints that further rupee depreciation would result in higher imported inflation, which suggests more aggressive dollar selling by the RBI to support the rupee (this will show up as falling foreign exchange reserves of the RBI). We also do not rule out further fiscal and supply side measures as the second line of defense. We expect another 25bp hike in the repo rate and 100bp worth of CRR hikes during this year, but last weekend’s press conference suggests to us that there is a rising risk of more aggressive rate action.(npsinha@thesynergyonline.com) DEBT MARKETS BECOMING PREFERRED CHANNELS FOR INVESTORS Thesynergyonline Economic Bureau NEW
DELHI , JUNE 23 : The
latest trends show that investors until about 3rd week of June 2008,
in totality invested about Rs. 1600 crore in debts market as against
less than 1200 crore in equities. The global slowdown on account
of high crude oil and food prices has caused turmoil in the capital
markets. As a result, investors are looking for safe instruments
in Releasing
the Chamber assessment, the ASSOCHAM Chief said that corporate bonds,
mainly debentures issued by companies of good standard are being
It is come to the notice of the ASSOCHAM that investors are taking part in debt markets mainly through medium of participatory note. Same case is with mutual fund industry as investors are moving more towards balanced funds and fixed maturity plans offered by mutual fund houses as the equity markets are fraught with volatility and price decline. The Chamber assessment also holds that resources need for infrastructure development, the requirement of mutual funds industry, new pension system and the developing market for securitised product, rising concerns about the asset liability management on the part of the banks, financial institutions along with development of derivative markets will see the debt markets grow exponentially in the future. The Chamber has pointed out that FIIs have two routes to enter India. One is the 70/30 route for equity for FIIs can invest a maximum 30 per cent of money in debt here. The second is the route for pure debt FIIs, where the foreign investor has to register with SEBI as an FII. SEBI recently hiked the investment limit for FIIs in the government security market to $ 3.2 billion from the previous ceiling of $ 2.6 billion. During the recent times, yields in government bond market have been on the rise in recent times. This coupled with the rising rupee and lower borrowing rates in the overseas market makes it lucrative for overseas investors to look at the Gilt market. As of December 2007, the outstanding FII investment in government securities and treasury bills through the normal route was $ 326.64 million. (npsinha@thesynergyonline.com) SOCIAL SECTOR RANKING OF INDIA LOWEST AMONG BRIC NATIONS Thesynergyonline Economic Bureau NEW
DELHI, JUNE 23 : According to the ASSOCHAM, “Public health and education expenditures among the BRIC countries” revealed that India’s public expenditure on the two most significant social sectors, health and education stood at 5 per cent and 9.2 per cent respectively as a per cent of GDP in FY 2005-06. While Brazil and Russia spent 7.9 per cent and 5.2 per cent on health as a per cent of GDP in FY 2005-06, India is a notch above China with public expenditure on education at 5 per cent of GDP in 2005-06. Surprisingly, China ranked lowest among the BRIC countries with a minimal share of 4.9 per cent of public expenditure on health. “India needs to keep its pace with other developing countries in its social sector development, to meet the twin objectives of rapid progress and inclusive growth. We need to invest in more quality education and health services” Mr. Sajjan Jindal, President ASSOCHAM, said. The
compression of the public spending by India on health is also reflected
in terms of high infant mortality rate as a consequent of rising
population and poverty of the country. In FY 2006-07, India’s
mortality rate under-5 (per 1000) stood at 76, the highest among
the BRIC countries. In contrast, Russia was ranked lowest infant
mortality rate at 16 per 1000 deaths in FY 2006-07. China and Brazil
ranked second In terms of Government education expenditure (per student primary) as a per cent of GDP per capita, India is at the lowest of the pile of BRIC economies with 9.2 per cent of GDP for the year 2004-05. While Russia, Brazil and China spends 12.9 per cent, 12.8 per cent and 10.2 per cent expenditure per student primary as a per cent of GDP per capita, India contributes just 9.2 per cent of GDP per capita towards primary education. Literacy rate of 67 per cent in India is least among BRIC countries. In FY 2004-05, Russia with highest public expenditure on education among the BRIC nations, has almost achieved complete literacy, as its literacy rate was 99.4 per cent. China, whose education spending stood at 10.2 per cent of its GDP, has 90.92 per cent literacy rate. Though the public expenditure in Brazil is comparatively high, the country lags behind China with literacy rate at 88.6 per cent in FY 2004-05. (npsinha@thesynergyonline.com) Thesynergyonline Economic Bureau
NEW
DELHI, JUNE 18 : The
ASSOCHAM Study “IPO Outlook 2008”, stated that companies
have been shying away from the primary market as the number of new
offerings dropped to mere one in April and May each. A large number
of companies The situation in IPO market may improve in last two-three months of the year, if the economies like US and UK, come out of the recession cycle, and inflation comes down owing to base effect and steps taken by the government, said the ASSOCHAM President, Mr. Sajjan Jindal. As per the AEP Study on the number of primary market issues declined to 19 in the first five months of the calendar year 2008 from 44 for the corresponding period of the last year, the amount raised was Rs. 1,628.50 crore. Considering the pace, the year may witness around 30 to 35 public offerings as compared to 101 IPOs in 2007, further said Mr. Jindal. In the year 2007, there were 101 Indian companies which raised the money from IPOs across 29 sectors amounting USD 5.8 billion (Rs.34119.7 crore). Around 90 per cent of the amount raised during January- May was restricted to power and construction sector. Reliance Power alone accounted for 60 per cent of the funds raised from primary market during the period. The IPOs market for the period Jan-May 2007 vs. 2008 Total Amount Raised by the companies Time
period No. of No. of Rs. crore USD billion IPO proceeds raised by the companies in financial services sector witness a negative growth of 47.38 per cent during January to May 2008 as against the same period in the previous year. During the period, the financial services firms raised IPO proceeds totaling to Rs. 496.52 crore. The sectors including telecom, IT and textiles registered negative growth in terms of amount raised in the primary market in the five-month period. Telecom
sector witness a decline in funds rose during January-May 2008,
with Rs. 199.30 crore contributing a meager share of 1.24 per cent.
The sector in the same period of the previous year raised Rs. 2443.75
crore Slowdown in textile sector was well reflected in the IPO market performance where the proceeds raised declined by 79.06 per cent and the number of companies opting for public listing reduced from six in Jan-May 2007 to just one in the corresponding period of the fiscal 08. The only textile company to have raised money from the primary market was Bang Overseas Limited, which offloaded its shares for Rs. 154 crore. The
slowdown in the US economy and the pressure from appreciating Rupee
have hit the IT sector that had witnessed a negative growth of 79.46
per cent in funds raised from IPO market. As compared to three IT
companies that went for public listing in Jan-May of the calendar
year 2007 contributing an amount totaling to Rs. 681.22 crore, only
one company listed its shares in last five months of the current
year raising Rs. 139.89 crore. The
global slowdown witnessed since the beginning of the calendar year
2008 has shaken the confidence of the firms and investors as some
major IPOs were withdrawn and others received lesser subscriptions.
It has During Jan-May 2007, prominent as well as some small sectors also got listed on the stock exchange market by raising capital through IPOs. To name few, major sectors such as health care (Rs.494.14 crore), real estate (Rs. 461.90 crore), media (Rs. 299.30 crore), agriculture and allied services (Rs. 250.89 crore), Infrastructure (214.58 crore) etc raised capital through IPO proceeds. But these sectors remain out of the market during the same period in 2008 due to the slowdown in the global market. (npsinha@thesynergyonline.com) WITH 25-27% YOY, KPO’s BUSINESS TO TOUCH US$ 10 BILLION BY 2012 Theesynergyonline Economic Bureau NEW
DELHI, JUNE 18 : Currently,
the KPO size is estimated to be around US$ 4 billion and the sector
has grown @ around 15 per cent in last few years, dominated by professionals
belonging to fields such as management, medical, Releasing
ASSOCHAM’s assessment on `Future Course of Indian KPOs, its
President, Mr. Sajjan Jindal said, “there is a need to create
a new pool of KPO workers from emerging domestic knowledge based
industries such as According
to ASSOCHAM, presently, domestic KPO industry is facing stiff competition
from countries like Philippines, Russia, China, Poland and Hungary
as these are emerging strong contenders for KPO business in view
As per estimates made by the ASSOCHAM, a vast pool of highly educated professionals in engineering, medicines, management and professionals in the field of accountancy, company secretary, legal fraternity would be required to serve the industry. Their number as per rough estimates should be well within the range of over 1 lakh against the current numbers of 40,000. Mr.
Jindal added that it is difficult for KPO companies to always find
a qualified, experienced and talented workforce in India. Considering
the situation that there is no dearth of engineers, doctors, MBAs,
lawyers etc. in India, the KPO industry is banking on availability
of this talented pool to fill up its seats, but now they are facing
the supply However,
the KPO sector has potential to attract career aspirants and professionals
as the sector provides revenues higher than the BPO industry. The
salary ranges are 12-15% higher than the BPOs industry and The domestic KPO industry needs to tighten its service level agreements to provide quality services and also needs to attract more revenue by entering into partnerships with big financial service organisations. While some of the Indian companies are coming out with the security framework which simultaneously increasing costs of industry and make them less competitive. Overseas clients often hesitate to offshore research and processing of sensitive financial data and information involving strategic decisions. The KPO sector deals with confidential data, including financial data, treasury and cash management functions and investment portfolio decisions and needs to address the issue of data security raised by international clients The Paper also predicts that KPOs has also other advantages like better work tools and processes, more sophisticated client centricity, higher billing rates and more domain focused organisations. Small and Medium Enterprises (SMEs) are likely to be the major growth drivers for the KPO sector. According to estimates, out of the 10 million SMEs in US and Europe, about 10-12% can benefit from KPO services due to reduced complexity, ability to compete effectively with small and large competitors, shorter time to market, higher flexibility, overall lower costs and potentially higher quality for the same costs. In fact, in the near future, KPO is likely to be driven by factors like breadth and depth of coverage, domain expertise, location advantage (e.g., near-shoring and language capabilities), sales and marketing capabilities, data compliance with respect to regulatory standards (especially those defined by the United States, Canada and the European Union) and the management of business risks. Therefore it is quite likely that companies – both with their own captives and those using third party vendors –may use a “hub and spoke” model in which a provider in India may constitute the “center” whereas other units in the world may provide appropriate “spokes.” (npsinha@thesynergyonline.com) ILO ADOPTS LANDARK DECLARATION ON SOCIAL JUSTICE FOR FAIR GLOBALISATION Thesynergyonline Economic Bureau GENEVA
, JUNE 15 : The “Declaration on Social Justice for a Fair Globalization” and an accompanying resolution, were adopted by acclamation of member States, workers and employers attending the 97th International Labour Conference meeting here following months of negotiations among its tripartite constituents representing its 182 member States.
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