Indian Cities to See Fastest Growth in Asia Over Five Years

Delhi will have the fastest growth of any city in Asia, with the economy to be almost 50 percent larger in 2021 than it was at the end of last year. Indian cities are set to expand the most across the region, with growth speeding up from the past 5 years, according to a new study from Oxford Economics, which ranked Asia’s 30 largest cities. With financial and business services projected to be the fastest growing sector in India, Delhi’s dominance in this industry will lead to higher growth and higher incomes. “Limits on foreign ownership of Indian companies are gradually being reduced or eliminated,” wrote Mark Britton, lead economist on the report. “In the short term this is conducive to strong growth in Delhi’s professional services sector, as overseas investors seek advice on possible deals, while long term it should mean steady income streams for such businesses.”

indian_citiesConsumer companies such as Japan’s Muji are also betting on that change. Parent company Ryohin Keikaku Co. sees India becoming its second largest international market, after China. And Amazon.com Inc.’s Indian unit is seeking approval to invest in a food supply chain and take advantage of government moves to ease rules on foreign retailers. China’s expansion will slow, although the largest five cities will still be recording growth rates of 6 percent or more. There will be a slight slowdown across the region amid moderating import demand from China, with growth expected to average 4.2 percent per year over the five years to 2021, down from 4.5 percent in 2012-2016. Even so, that’s still much faster than the developed economies and cities in the region – and that’s a big opportunity for companies. Starbucks Corp. plans to almost double the number of stores it has in mainland China by 2021, and McDonald’s Corp. plans to add 2,000 new restaurants over the same period. Both companies recently announced they were buying out their partners in Mainland China and taking control of operations.

However, there are significant differences across the region. Japanese cities are likely to remain at the bottom amid a challenging demographic outlook, with Osaka last in the rankings as its working-age population falls by approximately 1 percent per year, the report said. Tianjin is forecast to clock the fastest growth in China, given that it has a large manufacturing base and one of the nation’s busiest ports. However, as the services sector expands, the manufacturing and shipping industries may prove to be less supportive in future. Ho Chi Minh was the only non-Indian city in the top five, reflecting the city’s success in establishing itself as a manufacturing center, as well as its strong services sector.

  • Bloomberg

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Chargers mow down Mumbai

Deccan Chargers brought the high flying Mumbai Indians led by the mighty Sachin Tendulkar down to the ground.  Chasing 169 for a victory, the Mumbai Indians were racing away to a victory at 85/1 in just 10 overs when the dreaded tactical time out did the trick.

gibbs1

dwayne-smith1Pragyan Ojha who bowled an awesome 4 over spell taking 3 wickets for just 21 runs put brakes in the Mumbai batting. Fidel Edwards and RP Singh chipped in with 2 wickets apiece.

ojhaEarlier, batting first, the Deccan Chargers got off to a flier with Gibbs topscoring with 58 and ably supported by Gilchrist (35) and Dwayne Smith (35).  A lower order collapse restricted Deccan Chargers to just 168 when at a point 200 was surely on the cards.

dc-cheerleadersWith this victory, Deccan Chargers are clearly on the top with a 100% record. 3 wins in 3 matches.  DC next take on the mighty Chennai Super Kings on monday at 1600 hrs IST.  That should be another mouthwatering contest.

Above pictures courtesy: Cricinfo

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Nano to launch today

Tata Motors said it will launch its ultra-cheap Nano car in Mumbai on Monday — a vehicle meant to herald a revolution by making it possible for the world’s poor to purchase their first car. But few predict the snub-nosed Nano will be able to turn around the company, which has been beset by flagging sales and high debt, anytime soon.

tata-nanoThe Nano, which is priced starting at about 100,000 rupees ($2,050), is a stripped-down car for stripped-down times: It is 10.2 feet (3.1 meters) long, has one windshield wiper, a 623cc rear engine, and a diminutive trunk, according to the company’s Web site. It does not have air bags or antilock brakes — neither of which is required in India — and if you want air conditioning, a radio, or power steering, you’ll have to pay extra.

Tata Motors has been hard-hit by the global downturn. Commercial vehicle sales, its core business, have been decimated as India’s growth slows, and consumers have had trouble getting affordable car loans. The company declared a loss of 2.63 billion rupees ($54 million) for the October to December quarter, and it has been struggling to refinance the remaining $2 billion of a $3 billion loan it took to buy the Jaguar and Land Rover brands from Ford Motor Co. in June. Even the launch of the Nano has been scaled back.

The car is arriving six months late because of violent protests by farmers and opposition political party leaders over land, which forced Tata to move its Nano factory from West Bengal to the business-friendly state of Gujarat. Company officials have said it will take at least a year to complete the new factory, and until then, Tata will only be able to produce a limited number of Nanos from its other car plants in India.

Tata Motors hasn’t yet given details on production volumes, but most analysts doubt the company will be able to make more than about 50,000 cars in the next year — a far cry from the 250,000 the company had planned to roll out initially. Vaishali Jajoo, auto analyst at Mumbai’s Angel Broking, said even if Tata Motors manages to sell 250,000 Nanos a year, it will only add 3 percent to the company’s total revenues.

“That doesn’t make a significant difference to the top line. And for the bottom line, it will take five to six years to break even,” Jajoo said.

Still, in this new age of global thrift, the Nano sounds appealing to more than just the struggling farmers and petty businessmen across India that Tata initially had in mind for the car. “What do you think the chances are that the Nano will come to America? Personally, I’d love one,” Steven Smith, whose first car was a Volkswagen Dune Buggy, wrote recently on the Nano Facebook page.

Tata Motors unveiled the Tata Nano Europa, a slightly more robust version of the Indian model, at the Geneva Motor Show this month, with a planned launch of 2011. But the company has no plans to bring the Nano to America anytime soon.

Above news source: Associated Press

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Balls Thackeray at it again

Ya, the paper tiger of Bombay is at it again. In yet another WTF comment on his 82nd birthday (God, why is he not yet dead?), he wants all houses in Bombay to be reserved for Marathis.

Reserve 50 per cent of the houses for Marathi manush (common man). Otherwise, we will launch an agitation and not allow even a brick to be laid,” Thackeray said.

He also said that it’s time for a Marathi to take over as the Prime Minister of India. He even dropped the name of a potential candidate, saying Nationalist Congress Party (NCP) President Sharad Pawar was ‘prime ministerial material’.

Still wanna read the rest of his crap? Ok, click here.

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Gulf Finance House to invest USD 10 billion in Mumbai SEZ

In a significant move signaling its continued commitment to the rapidly growing Indian economy, Gulf Finance House, yesterday signed a wide ranging agreement with the Government of Maharashtra to facilitate the creation of one of the largest development projects in the state – a state-of-the-art Economic Development Zone – just outside Mumbai, the country’s financial and commercial capital.

gulf finance house

The 1600-acre zone, which will attract a total investment in excess of $10 billion, comes exactly a year after GFH had signed a similar agreement with the state for the development of India’s first energy business district – Energy City India. The bank had floated an immensely successful private placement initiative earlier this year that raised $630 million towards the first phase of its development. The economic development zone announced yesterday will include Energy City India, apart from incorporating three additional components – Telecom City Mumbai , Software City Mumbai and Entertainment City Mumbai.

Rest of the article here.

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