India Abroad September 25, 2015 A43 BUsINess
the week that was
Target $500 billion
India’s Finance Minister Arun Jaitley and US
Ambassador to India Richard Verma have set a target of
$500 billion for Indo-US trade in the future ahead of
Prime Minister Narendra Modi’s visit to Silicon Valley
later this month.
Jaitley and Verma echoed each other while addressing
the 11th Indo-US Economic Summit held September 14
in Delhi. The theme of this year’s Summit was ‘ Taking
Bilateral Trade to $500 billion’.
According to Jaitley the $500 billion target is achievable.
‘Our governments are working together on increased
engagement and new initiatives to reach the $500 billion goal in the years to come. We have made incredible
progress in the past year and look forward to even
greater strides going forward,’ ‘Rich’ Verma said.
The trade between the two nations crossed $100 billion, a five-fold jump compared to what it was in 2004.
This has been facilitated by the presence of over 500
US companies active in India, and the presence of
Indian companies active in the US jumping from 85 in
2005 to over 200 companies today.
India’s gold imports zoom 140%
The global economic slowdown and depressed prices
of commodities are telling on India’s exports. The value
of India’s exports slumped 20.66% to $21.26 billion in
August, a straight fall for nine consecutive months.
India’s exports in August 2014 stood at $26.8 billion.
Adding to India’s woes further was the sharp jump in
gold imports that zoomed from $2.06 billion last year to
$4.95 billion this August, a 140% jump, even as overall
imports declined by 9.95 per cent to 33.74 billion.
This mismatch between exports and imports has led to
the trade deficit widening to $12.47 billion.
4 of the top 5 ‘ease of doing
business’ states ruled by BJP
Gujarat, which was ruled by India’s Prime Minister
Narendra Modi from late 2001 to mid 2014, has emerged
as the best place for ease of doing business according to
the World Bank’s State Implementation of
Business Reforms report.
With an overall score of 71.17 based on
progress made on 98 action points that
encourage good governance, Gujarat has
topped the list, followed closely by Andhra
Pradesh at 70.12 and another BJP ruled
state, Jharkhand, at number three with a
score of 63.09.
Four of the five states that top this list
lines up are BJP-ruled states. Apart from
Gujarat and Jharkhand, Chhattisgarh is at
number four (62.45) followed by Madhya
This is the first time that the World Bank
created a sub-regional ranking of Indian
states based on the 98 points.
Shiv Nadar, Sanjay Kalra
set up $500 mn fund to
invest in US healthcare
IT barons Shiv Nadar of HCl and Sanjay
Kalra — who once worked at HCl Tech and
later Tech Mahindra – have joined hands to
set up a $500 million venture fund that will
buy out US healthcare businesses and also
invest in disruptive start-ups.
The fund, Shiv Nadar & Sanjay Kalra
Associates, SNSK, will be led by Kalra.
‘We are a group of operational executives with capital
looking for buy-outs, carve-outs in the healthcare technology space in the US,’ Kalra said.
The two businessmen are betting big on the estimated
$3.207 trillion US healthcare spend this year and on the
320 million US citizens who individually spend $10,000
each on healthcare.
BoFA: Mobile payments to grow
200 fold to $3 trillion in 7 years
The huge boom in mobile payments will benefit the
Indian telecom, IT, mobile banking and wallet companies,
according to a report compiled by Bank Of America
‘In India, we consider mobile payments to be both an
opportunity (for banks, telcos and new players) and threat
(due to dis-intermediation, more to the traditional banks).
We estimate the value of mobile banking, estimated at
just $16 billion today to rise 200x in 7 years to more than
$3,000 billion,’ the BofA Ml report observed.
‘We consider this as an opportunity for banks, independent payment wallets, telcos and IT companies to
improve their competitive positioning; a threat to some of
the public sector banks, smaller companies who are late in
this space and expect this to provide a big thrust to financial inclusion,’ the report added.
Bear Moody’s versus bull
In the last two months Moody’s, international
ratings agency, has issued reports that pegs
Now comes a Goldman Sachs report, a perfect
counter foil to Moody’s gloomy prediction, that
states that India’s GDP could grow by 8% for
the five years between financial year 2016 and
‘We forecast India’s potential growth could
rise to 8 per cent over the period FY16-20 from
7 per cent in FY12-15, under the new GDP
series, based on bottom-up factors and structural reforms,’ Goldman Sachs Chief India
Economist Tushar Poddar said in the research
‘The areas in ease of doing business where the
brokerage expects some improvement are dealing with construction permits, getting electricity, and registering property due to a big push by
anand mahindra, left, chairman and managing director, mahindra & mahindra, and Pawan Goenka, executive director, m&m, pose with the company’s newly launched tUv300 vehicle in chakan on the outskirts of Pune. Indian automaker mahindra & mahindra launched its first new sport utility vehicle in three years to regain lost market share in a fast-growing but fiercely competitive segment.
Remember all those manhole covers marked made in India that you see in manhattan? a laborer works inside the manufacturing unit of manhole cover parts at a factory on the outskirts of Kolkata. India’s annual industrial output growth slowed to 4.2% in July compared with an upwardly revised 4.4% growth a month ago. RUPaK De cho WDhURI/ReUteRS
ShaIle Sh anDRa De/Re UteRS