India is likely to overtake Japan and Germany to become the third largest economy in the next 10 years but needs to be consistent in reforms and focus more on the social sector, British brokerage HSBC has said.
Social capital is "insufficient" in the country and spending on aspects like health and education "is not just desirable for its (India's) own sake, but is also central to economic growth and political stability", it said.
India also needs a lot of focus on ease of doing business and related aspects like contract enforcements.
"In over the next ten years, India will likely surpass Germany and Japan to become the world’s third largest economy in nominal USD and the transition will happen even more quickly on a PPP (purchasing power parity) basis," its economists said in a note.
Demographics and macro stability were pointed out as key strengths for the country by the brokerage.
Its estimates show India will be a USD 7 trillion economy in 2028, as compared to less than USD 6 trillion and USD 5 trillion for Germany and Japan, respectively.
Presently, India's GDP is around USD 2.3 trillion (fiscal 2016-17). It stands at the fifth spot in global rankings.
The brokerage said the growth rate, which will be lower in FY18 as compared to the year-ago's 7.1 per cent due to the introduction of Goods and Services Tax (GST), will recover from next year in a sustainable fashion.
It also made a case against "stray reforms", terming them as "harmful".
"There are limits to one-off reforms. India needs to create an ecosystem of continuous change," it said.
Citing the case of GST, it said the informal enterprises that create a bulk of jobs in the country may respond to higher taxation by shutting shop or laying off workmen.
With concerns being raised about jobless growth, it said the e-commerce sector will create 12 million jobs over the next decade, which is half of the 24 million shortfall.
Another avenue of job creation can be the social sector, where a lot of work needs to be done on health and education fronts, it said.
India will continue to be a services oriented economy but needs to pay extra attention on manufacturing and farm sectors as well, it said, adding that it would be desirable to maintain the contribution of manufacturing, agriculture and services at the current levels.
The Indian story will be different from the export- oriented one of China's, it said, pointing out that domestic consumption with over 550 million consumers will be the standout factor.
Apart from services, other hallmarks of the India story over the next decade will be higher investment and capital goods flows as its focus on manufacturing increases, Indian consumers forcing foreign brands to turn 'glocal' and a two- way human capital footprint that will see many skilled people travelling overseas, it said.
"It (India) needs to broaden its specialisation (beyond just IT in business and cricket in sports) if it wants to run harder and fly higher," it said.
Source: Money control
Three Indians have been included into the list of 100 greatest living business minds released by Forbes. Ratan Tata, Chairman Emeritus of the salt-to-software conglomerate; Lakshmi Mittal, CEO and Chairman of world’s largest steel producer, Arcelor Mittal; and Vinod Khosla, the founder of VC firm Khosla Ventures have featured in ‘the greatest ever collection of business essayists and greatest ever portrait portfolio in business history’.
Apart from these three, the list includes names like Jeff Bezos, Mark Zuckerberg, Warren Buffett, Bill Gates, Muhammad Yunus, Donald Trump and Masayoshi Son.
Ratan Tata: He is the Chairman Emeritus of Tata group under whose leadership, the revenue of the group touched USD 100 billion in 2011-12. An alumni of Cornell University and Harvard Business School, he is a recipient of the second highest civilian awards of India—Padma Vibhushan.Vinod Khosla: The India-born American businessman and engineer was the co-founder of Sun Microsystem which is credited to develop Java programming language. The company was later acquired by Oracle in 2010. His venture has invested in companies like Academia.edu, BioConsortia, Checkr among others.
His message: I explicitly don't build or guard my reputation. I believe in telling it like it is and not worrying about it.
Net worth: USD 1.82 Billion (Source: Forbes, as on September 20)
Lakhsmi Mittal: The Indian steel baron is the second richest Indian in the world after Mukesh Ambani. Under his guidance, ArcelorMittal waded through tumultuous times and registered a profit of 1.8 billion at a time when the world was dealing with steel over-production. This was the first time the company posted a profit since 2011. The company had lost USD 7.9 billion in 2015.
His message: Every industry today has to fight complacency, prepare to see the disruption coming and then be flexible enough to adapt swiftly
Net worth: USD 16.5 Billion (Source: Forbes, as on September 20)
Source: Money control
NEW DELHI: India and Switzerland today discussed issues relating to transparency in financial transactions and agreed on early operationalisation of the automatic exchange of information on tax between the two countries in a bid to check black money.
The issue came up at a meeting between Prime Minister Narendra Modi and visiting Swiss President Doris Leuthard, who said the automatic information agreement would be operational by 2019 once the Swiss Parliament clears it.
Addressing the media with the visiting dignitary after delegation-level talks, PM Modi said India will continue to work with Switzerland to combat black money while the Swiss President stressed that her country has one of the strongest laws against money laundering.
"Transparency in financial transactions is an issue of concern in today's world, whether it be black money, dirty money, hawala or arms and drugs financing," PM Modi said.
"To combat this global problem, we will continue to cooperate with Switzerland," he said.
He said that with two countries signing a joint declaration for automatic exchange of tax information last year, India will get such information on an automatic basis once it is internally ratified in Switzerland.
PM Modi said foreign direct investment was an important pillar of economic cooperation between India and Switzerland. "We specially welcome Swiss investors in India.
"We agreed to continue discussions on a bilateral investment agreement. Swiss companies have a lot of expertise to partner India in its road to development."
The Prime Minister said that in a meeting of business leaders of the two countries he attended along with Leuthard, it was clear that both sides were eager to have business-to-business collaborations.
He thanked Switzerland for its support to India's entry into the Missile Technology Control Regime (MTCR).
Switzerland is the seventh largest trading partner for India with a total bilateral trade, including merchandise exports, bullion and IT services and software exports, of $18.2 billion in 2016-17.
From April 2000 to September 2016, Switzerland invested approximately $3.57 billion in India, thus becoming the 11th largest investor and accounting for about 1.2 per cent of total foreign direct investment (FDI) in India.
Stating that the proposed free trade agreement between the European Union and India also came up for discussion, PM Modi said that both sides were committed to an early conclusion of this.
He said that Indian traditional medicine can play an important role in health and wellness and thanked Switzerland for giving ayurveda its due recognition.
The Prime Minister said that after India and Switzerland launched a joint initiative called SkillSonics for vocational education and skills training, over 5,000 Indians have benefited.
He also said that both countries have agreed to work together for the full implementation of the Paris Agreement on climate change.
On her part, President Leuthard said Switzerland had one of the strongest laws against money laundering and hoped other countries would follow suit.
On automatic exchange of tax information, she said that the law was now with the Swiss Parliament for ratification and hoped that such information can be shared with India from 2019 onwards.
"This is important because Switzerland is and will be an important financial place and we have all interest to be transparent, cooperative, and a good reliable partner," she said, adding that both her country and India can go hand-in-hand on this.
The Swiss President said she discussed with PM Modi the issue of an investor protection agreement on which negotiations were underway.
Following today's talks, the two countries signed two agreements on cooperation in the railway sector.
President Leuthard arrived in Delhi yesterday on a four-day visit to India. Swiss Presidents have earlier visited India in 1998, 2003 and 2007.
PM Modi visited Switzerland in June 2016 in what was the first prime ministerial visit from India to that country in several decades.
Source: NDTV News
MUMBAI: As it expects the volume turnaround momentum to continue in India, The Coca-Cola Company wants the country to be "the no. 3 market" in the future from the present sixth slot
Describing India as "a great country and a great place to do business", Coca-Cola president and chief executive James Quincey on Thursday said the recent blip in sales are behind them and that he is looking to build the fundamentals stronger to make India's business much bigger
"Over the last few decades, we've been investing in India, creating lots of jobs and lots of business and it has become the sixth largest market in the Coke system
"The most immediate challenge for KK (T Krishnakumar, president of Coca-Cola India & Southwest Asia) is to become no. 5 in the foreseeable future, but in the end, my vision for India is it will be one of the top three markets in the world for Coca-Cola," Quincey told a select group of reporters
Quincey, who was elevated as the CEO of the Atlanta- based cola major in May, also said India is a great country with many opportunities and a great future and Coke wants to build a good business here and without quantifying the amount, committed to investment more than USD 5 billion by 2020 as announced earlier
"India is going to return to vibrant growth...India can be a very successful place to build the business. The ideal is let's get from six to five on the way to being no 3 is the mandate," he said
He parried a question on how much of the said investment have already been made, saying, "We continue with our investment plan through 2020. We'll keep making more investments. We want to be consistently investing.
Admitting that sales had fallen in the last quarter of 2016 and in the first quarter of 2017, he said things have started to turn around
"No business can grow in a perfect straight line. We've had a rough few months at the end of last year and at the beginning of this year but things are starting to turn around and come back. We are still very positive," he said
Though he promised to reduce the sugar content in their products -- an issue that has been gaining currency across the world on health grounds -- Quincey did not offer a timeline to do so, but said, faster growth in India will also come from non-carbonated (non-sparkling) drinks, as elsewhere
When asked about when will the company have a 50:50 product and revenue share globally, he parried a direct answer but said it took almost 15 year to reach 70 per cent from 90 per cent so, and it could be 2025 or 2030
He was, however, quick to add that sparkling drinks will continue to grow here and will remain the focus in the immediate future
Quincey also said the company is open to inorganic growth opportunities as in the past, Coke had bought out the local brand - ThumsUp which still continues to be the volume driver here.The company will be investing more in the non-sparkling segment to expand the portfolio
"If you went back 10-15 years, the business was still 90 per cent sparkling globally which now is under 70 per cent. We see an opportunity to not just continue but accelerate the broadening of the portfolio yet during that time sparkling continued to grow.But he was quick to add, "Over the next five years the revenue we get from sparkling in India will grow and yet the total revenue will grow faster than sparkling. Over time we'll get more and more of the other categories contributing to the revenue
"Today, we are still a majority sparkling business in India but are beginning to expand the portfolio very assertively and grow that business out into the other categories. ThumsUp and Coke will continue to grow but the total business will grow faster," he said.
Source: Times of India
NEW DELHI: Sweden's Saab will tie up with India's Adani Group to bid for a contract to make fighter aircrafts in India, an aerospace consultant aware of the proposed partnership told Reuters on Thursday.
The partnership will compete with U.S. defence giant Lockheed Martin in a two horse-race to equip the Indian military with single-engine jets to be produced locally under Prime Minister Narendra Modi's "Make-in-India" initiative.The Saab-Adani partnership is aimed at producing planes under India's new "strategic partnership" policy, said Ratan Shrivastava, the independent New-Delhi-based consultant and adviser at India's industry lobby group FICCI said.
The partnership will likely be announced on Friday, Shrivastava said.
Saab President and Chief Executive Hakan Buskhe will host a media event in New Delhi on Friday, Saab said in a press invitation issued on Wednesday. It did not give details.
Saab did not immediately respond to a request for comment. There was no immediate comment from Adani, which is a $12 billion group with businesses ranging from energy and logistics to real estate and defence.
Under the country's new defence partnership policy, a foreign aircraft maker will collaborate with an Indian firm to develop a world-class indigenous aeronautical base that India has struggled to build for decades.
Lockheed has already picked India's Tata Advanced Systems as its local partner to produce its F-16 fighter planes that will compete with Saab's Gripen aircraft.
The government will issue a formal request to Lockheed and Saab over the next few days to provide information about their plans to design, develop and produce combat jets in India, a government official told Reuters earlier this week.
India's air force needs hundreds of aircraft to replace its Soviet-era fleet, but Modi wants the planes built in India to help boost the domestic industrial base and cut imports.
Source:New Indian Express