India, EFTA trade pact talks begin

Commerce and industries minister Kamal Nath announced on Saturday that India and the European Free Trade Association (EFTA) states—Iceland, Norway, Switzerland and Liechtenstein—had agreed to constitute a joint task force (JTF), comprising officials from India and the EFTA states, to negotiate the proposed broad based trade and investment agreement between the two sides.

The announcement came on the sidelines of the World Economic Forum Annual Meeting 2008 at Davos. The JTF would also monitor the implementations of the recommendations of an India-EFTA Joint Study Group (JSG) which was established on December 1, 2006. The mandate of the JSG was to undertake a comprehensive review of bilateral economic linkages between India and the EFTA states and to recommend measures to strengthen the economic engagement. It was also tasked to explore the feasibility of a bilateral broadbased trade and investment agreement.

The JSG, Nath announced, had since met four times and has submitted its report to the governments of India and the EFTA states.

The JSG has also concluded that both sides should advance their economic relationship by exploiting the potential for enhancing trade and investment flows. Considering the complementary structure of the economies, the JSG concluded that both sides would significantly benefit from a bilateral trade agreement.

The JSF also recommended that the two sides should enter into negotiations for such an agreement. These recommendations have been accepted by the two sides.

India is the “Future of The World”, says Sarkozy ahead of visit

A 11 member business team led by Sunil Bharti Mittal, the President of the Confederation of Indian Industry (CII) called on French President Nicolas Sarkozy on Tuesday at the Elysee Palace in Paris.
During the meeting, President Sarkozy referred to India as the Future of the World and described it as one of great and emerging nations of the 21st Century.
The Indian business delegation discussed issues of investment in France; work permits. They also acknowledged good understanding in politics and strategic thinking, but said that trade and investment between France and India needed to improve.
They highlighted the opportunities in infrastructure; in defence equipments especially offset; in healthcare by creating a pool of researchers and academicians; they discussed reduction of drug prices by support to generic drug industry.
The team also discussed the opportunities in the auto industry in India and the need for France to make an iconic investment in India. The business delegation acknowledged that a new chapter in Indo-French relations was expected with President Sarkozy at the helm in France. There were discussions on building synergies between SMEs. In echoing his view of the changing global economic and political order, President Sarkozy was emphatic about India`s role and responsibilities at the high table of global leadership.

India leads global BPO growth

The outsourcing market in Asia Pacific grew substantially in 2007, fuelled primarily by increased demand from corporations based in India, say the latest TPI Index from sourcing advisory firm TPI.

Outsourcing in Asia Pacific saw its second consecutive year of strong growth and showed an increase in demand across all measures. Although the number of contracts signed in 2007 grew by just 4 per cent, their total contract value increased 30 per cent year over year from $9.9bn to $12.8bn and annualised revenues showed a 13 per cent increase, nearly double that of the global average. Asia Pacific was the only geography to show an increase across all of these measures.

The average value of outsourcing contracts in Asia Pacific increased by 25 per cent, from $141mn to $176mn, largely due to the increased mega relationship activity in the region, especially in the last quarter of 2007. The region showed particular strength in mega relationships with nine deals signed in 2007 at a total value of $1.5bn. This represents one third of the mega relationships globally and contrasts sharply with the region's overall share of one-sixth of the global outsourcing market.

Larger contracts have become popular among companies based in Asia. In addition, BPO performance in Asia-Pacific was particularly strong in 2007. BPO TCV in the region soared by 101 per cent, yielding the best year ever for BPO contract values in the region and leading average BPO contract value to increase by 81 per cent.

Outsourcing growth in Asia-Pacific was largely driven by companies in India and China. These countries traditionally known as outsourcing destinations are becoming buyers of outsourcing. India has seen stepped up outsourcing activity within the telecommunications and financial services sectors whereas growth in China has been strongly influenced by a single telecommunications mega deal.

Global financial crisis not to hurt India: Nath

Commerce and Industry Minister Kamal Nath asserted on Wednesday at the World Economic Forum’s annual meeting that India would not be engulfed by the worsening global financial and credit crisis. He maintained that the country’s growth path is based more on the domestic consumption, and not on exports.

“Unlike China, which is relatively more dependent on exports for its growth, the growth in Indian economy is driven by the surging demand,” Nath maintained. He also said India was not “coupled” with the happenings in the US and other economies.

“I don’t see the impact of the financial crisis on India,” the minister reiterated during a session on ‘Update 2008: Economics’.

He argued that “the dynamics of the recession” had changed, adding that the government was more concerned about the sudden spurt in the international prices of food articles.

As expected , the proceedings on the first day of the Davos 2008 were dominated by one issue — the fear of a recession in the US economy, and how it would impact various countries.

Besides, the participants debated whether China and India would continue to grow at a brisk pace given the recessionary pressures on the US economy.

“The rest of the world is not as resilient as China and India and it is difficult to predict the repercussions of a severe recession in the US economy if its current consumption of $9.5 trillion slows down drastically,” said Stephen Roach, chairman of investment bank Morgan Stanley in Asia.

Roach suggested that it was wrong to say China and India can grow independently despite the recession in the US economy, adding the domestic consumption in China is about $1 trillion and $ 50 billion in India. He said if the consumption in the US economy shrinked by $3-4 trillion, China and India would be adversely impacted.

However, Nath differed, saying “economic activity has shifted to East Asian economies and what we are witnessing is growing South-South trade”.

Both India’s political and corporate elite are putting a brave face on the worsening economic situation in the industrialized countries, said several analysts at the WEF meeting.

Clearly, there is lack of consensus on whether China and India can be de-coupled from the happenings in the US economy.

However, Yu Yongding, director of the Institute of World Economics and Politics at the Chinese Academy of Social Sciences, said: “If there is a tremendous slowdown in the US economy, then we must be worried about it.”

Nouriel Roubini, chairman of New York-based Roubini Global Economics, said “if the US economy sneezes, the rest of the world catches a cold”, adding this time the diagnosis in the US was worse.

Economists also remained divided over the role of central banks in bringing the world to the brink of recession, and whether institutions like the Fed were equipped to steer the global economy out of danger.

John Snow, former US treasury secretary, said central banks had performed remarkably over the last two decades. “The issue of whether central banks are capable of vigorous action, bold action, was answered yesterday [referring to the cut by 75 basis points in the interest rate by the Fed on Tuesday].”

Modern India a new center of economic power

NATION READY FOR NEW ROLE IN GLOBAL AFFAIRS

Hardly a breath passes in today's busy world without the mention of India. It is as if that emerging power's presence reaches in all directions, demanding a voice in every significant global conversation. Indeed, some have argued that the "Age of India" is upon us.

At the very least, the 21st century will witness New Delhi's continued rise as one of the principal centers of influence. As such, the community of nations should extend to India more of the benefits that its status warrants, including permanent membership in the United Nations Security Council.

Now, I am not bringing this up simply because British Prime Minister Gordon Brown made it an issue during his visit to India this week, although I was pleased to hear his comments. Both Brown and Indian Prime Minister Manmohan Singh called for India to have a permanent seat, largely because of the country's growing economic clout.

It is time.

I have long believed that the thinking behind the current U.N. Security Council configuration was appropriate for its moment in history, that is, the period following World War II. In the interim, however, several additional nations have climbed to prominence. The old order should change, even though that could dilute the power of the permanent five: the United States, Russia, China, Britain and France.

In considering candidates, India is a logical one, as are Japan, Brazil, Germany, Nigeria, Mexico, South Africa, Indonesia, Egypt and perhaps others.

One appealing proposal would increase the total number of permanent seats to 10, while adding four more revolving positions. In the end, though, an acceptable modification of the U.N. Security Council could happen in several ways.

Brown also discussed the benefits of having New Delhi join an international group - the Paris-based Financial Action Task Force - that combats money laundering and terrorist financing. India's long experience with political violence and its increasing role in the global economy offer a compelling reason for its participation.

Finally, Brown shared words that no doubt resonated with many Indians when he stressed that Britain - the former colonial power in India until 1947 - was no longer the dominant partner in their relationship. Even though some might argue that he was stating the obvious, it was no small gesture to emphasize the new reality. A dose of humility goes a long way in building international ties - a lesson that President George W. Bush once advocated but appears to have essentially forgotten.

"Ours is a strategic partnership of equals. A confident, modern, 21st-century India and a confident, modern, 21st-century Britain," Brown said.

Such respectful dialogue creates the basis for mutually beneficial, enduring cooperation, whether the coming era is the "Age of India" or an environment where several heavyweights - including the United States, China, Europe and India - share the stage.

French award for Shah Rukh Khan

The French government will confer "Officer of the Order of Arts and Letters" title on Bollywood star Shah Rukh Khan for his contribution to Indian film industry, a senior French government official said on Thursday.

"The title is being conferred to recognise the successful work done by Khan in 15-year career span and his contribution to Indian cinema - as an artiste and entrepreneur," Audiovisual Attache - Head of the French Film and TV office, French Embassy in India, Mohamed Bendjebbour said.

The distinction is given to persons who have established themselves by their creativity in the field of art, culture and literature or for their contribution to the influence of the arts in France and throughout the world, Bendjebbour said.

French Ambassador in India Jerome Bonnafont will confer the title on Khan at the inaugural ceremony of four-day French film festival - First rendezvous with French cinema here in Mumbai on January 27.

This is not the first time an Indian film personality is being honoured by the French government. In 2005, renowned director Adoor Gopalakrishnan was bestowed with a similar title as Khan, while last year Amitabh Bachchan was conferred with "The Legion d'Honneur", France's highest civilian honour.

"We have the tradition of honouring great film personalities in India. Our government believes that Indian film industry is today among the best in the world in terms of quality," the official said.

Tendulkar wraps up Indian test win

Sachin Tendulkar completed his 46th test half-century as India wrapped up a six-wicket victory over Pakistan in the first test in New Delhi on Monday.
art.tendulkar.afp.gi.jpg

Tendulkar is now second only to Brian Lara in the list of test run scorers.

The hosts knocked off the 32 runs they needed to win and go ahead in the three-match series off 6.2 overs, Tendulkar finishing with 56 not out.

Tendulkar, 32 overnight, pulled pacemen Shoaib Akhtar and Mohammad Sami for fours and reached his half-century by hitting leg-spinner Danish Kaneria through the covers for a boundary.

He finished the match with a square-cut four off Akhtar.

"Every time he (Tendulkar) goes out to bat he has to handle pressure and he has done it for the last 18 years," said India captain Anil Kumble.

"The hunger is there as always. He is definitely going to be number one test batsman in terms of runs, centuries, everything."

During this match Tendulkar became the second-highest test scorer with 11,207 runs and a record 37 centuries. Retired West Indies captain Brian Lara is now the only player ahead of him with 11,953.

Shoaib was Pakistan's best bowler with four for 58.

He denied left-handed Sourav Ganguly a 50 in his second over of the morning, having him caught pulling by debutant Sohail Tanvir at fine-leg.

Ganguly fell at his overnight score of 48 after putting on 88 for the fourth wicket with Tendulkar to set up the comfortable victory. He hit eight fours in his 64-ball knock.

Kumble said:"I think the boys responded very well. Everyone contributed in this win. The stand between Mahendra Singh Dhoni and Laxman in the first innings was very crucial. Laxman is a class player.

"Our bowlers kept pressure in the second innings and then came the Ganguly-Tendulkar stand, which was the turning point."

The match was a personal triumph for veteran leg-spinner Kumble, who finished with seven wickets on his captaincy debut and was named man of the match.

The second Test begins in Kolkata on Friday.

Pakistan suffered an injury blow after the test when their captain Shoaib Malik injured an ankle during a training session.

"The boys were playing football after the match when Malik twisted his ankle. He was taken to a hospital for precautionary X-rays," said Pakistani team media co-ordinator Javed Akhtar.

He said it was too early to say whether Malik would be doubtful for the second tes

UN to observe February 20 as World Day of Social Justice

The UN has decided to observe February 20 every year, starting in 2009, as the World Day of Social Justice to promote efforts to tackle issues such as poverty, exclusion and unemployment.

In a unanimously adopted resolution, the UN General Assembly urged its 192 member states to devote the day to promoting activities at the national level in support of the objectives and goals of the 1995 World Summit for Social Development, which was held in Copenhagen.

Governments meeting at that summit had pledged to make poverty eradication, full employment and the fostering of social integration their overriding objectives of development.

In designating the World Day, the Assembly "recognizes the need to consolidate further the efforts of the international community in poverty eradication and in promoting full employment and decent work, gender equality and access to social well-being and justice for all".

In another resolution adopted on Monday, the Assembly linked illicit trade in rough diamonds to the fuelling of armed conflicts around the world and stressed the need for the widest possible participation in the Kimberley Process Certification Scheme.

Energy deals between India, Russia by Feb: Deora

Energy deals between Indian and Russian oil and gas majors in upstream and downstream sectors could be "firmed up" by February, Petroleum Minister Murli Deora has said.

"(Russian Prime Minister Viktor) Zubkov has assured India of Moscow's backing in its quest for energy security by adopting a favourable approach and transforming the bilateral cooperation in hydrocarbons as one of the main planks of Indo-Russian strategic partnership," Deora told reporters in Moscow on Monday after holding talks with the Russian premier and other senior Moscow officials.

Deora arrived in Moscow on Sunday on a two-day visit and his meeting with Zubkov was a follow-up of the successful summit between Prime Minister Manmohan Singh and Russian President Vladimir Putin earlier this month.

Deora said that Indian Oil Corp, ONGC and OVL (the foreign operations arm of ONGC) and Russia's Rosneft and Gazprom are in dialogue to "concretise" mutually beneficial projects in upstream, mid-stream and downstream sectors.

He said some deals could be "firmed up" by February, when Zubkov will visit India to inaugurate the 'Year of Russia' and is expected to take with him a large business delegation to attend the second Indo-Russian Trade and Investment Forum in New Delhi.

Deora, who is accompanied by the Petroleum Secretary and top brass of the Indian hydrocarbons majors, underscored that the focus was to go beyond the successful Sakhalin-1 project in which OVL has 20 per cent stake. He evinced India's interest in Kiriinsky Block of Sakhalin-3 offshore project with Rosneft, which has yet to pick a partner.

Deora and Zubkov agreed that the energy majors of the two nations should concretise projects in the field of exploration and production, grassroot refineries, modernization and upgrading of refineries, gas-based petrochemical plants, gas processing plants including its liquefaction in India, Russia and third countries.

He said that new opportunities are opening for Russian investments in India's downstream projects including the refining capacity.

With the estimated investments of USD 20-22 billion in the 11th five-year plan, the growing refining and petrochemical sectors offer immense opportunities for the Russian companies, Deora said.

The idea of Russian involvement in the downstream sector in India to offset Indian investments in upstream oil and gas projects in Russia was first voiced by Deora during his visit last year. However, he conceded that there has been "little or no" progress since then.

World's Greenest cars

From hybrids to hydrogen cells, almost every automaker is busy experimenting furiously to increase its production of alternative fuel and high mileage cars, popularly referred to as "Green cars." As crude oil hovers at an all-time high of $100 and an imminent fuel hike looms large the world over, it has sparked a huge interest in clean, green cars.

In India too, the leading carmaker Tata Motors has unveiled a blueprint to introduce hybrid and hydrogen cars within eight years. The rest of the world, however, already has a number of green cars that are not only running on the roads, but some of these are even giving serious competition to the ones that emit large amounts of CO2.

We, therefore, decided to look at the entire spread of green cars commercially available in the world today and chose some of the most popular ones for you. These cars may not be headed to India in the near future, but it would do Planet Earth a lot of good if more and more buyers have green on their mind. Have a look as these cars give a glimpse into the shape of things err… cars to come.

India's career diplomat Kamlesh Sharma is the new Commonwealth Secretary General.

66-year-old retired IFS officer Sharma, currently High Commissioner in the UK, will hold the prestigious post for two years beginning March next year when the incumbent Don Mckinnon's two-time term ends.

Sharma was elected to the post at the Commonwealth Heads of Government Meeting currently underway here.

Having immense experience in dealing with global issues, Sharma has served with distinction at various key positions including as India's Permanent Representative to the UN and spokesperson for developing countries in the UNCTAD during the Uruguay Round of multilateral trade negotiations.

Sharma has also played a key role in both South-South and North-South relations.

Sharma is currently a member of the Board of Governors of Commonwealth Secretariat and the Commonwealth Foundation where he has taken keen interest in the activities and guided India's close engagement with the Commonwealth since 2004.

He has served as India's Permanent Representative in New York during which he chaired the Working Group on Financing for Development and the successful consensus building that he has achieved led to the conference yielding the 'Monterrey Consensus' in the conference in Mexico.

He was closely engaged in the process which led to the formulation and adoption of the Millennium Development Goals.

Sharma also had the distinction of being the first Special Representative of UN Secretary General to independent East Timor where he was directly engaged in all aspects of nation building and safeguarding its security.

India’s workers get biggest pay rise

Indian companies are giving their staff the biggest salary increases in the world, according to a survey that is likely to fuel concerns over wage inflation in one of the fastest growing economies.

Indian employees are estimated to have received an average salary increase of 14 per cent this year. The rate is expected to be maintained in with 2008 settlements forecast to average 15 per cent. That compares with an anticipated annual inflation rate of 5.7 per cent this year and 5.4 per cent in 2008.

The survey covered more than 4,000 companies worldwide and was conducted over two months by Towers Perrin, a human resources advisory company.

The survey showed Indian salary rises virtually across the board, from executive to production floor, far outstripping those in China, the other powerhouse of the Asian economy.

Chinese employees are heading for salary increases of 8 per cent this year and 9 per cent in 2008, based on projected annual inflation of 3.6 per cent and 3.5 per cent.

The findings back growing evidence in India that management compensation there is now on a par with and sometimes higher than the global average, excluding the high-profile packages common in the US or UK.

“Typically, you used to get an Indian chief executive for one-third or even one-quarter of the cost of his foreign counterpart,” said Dinesh Mirchandani, India president for Boyden, an executive search firm. “Today, it’s dollar for dollar.”

The rise in Indian salaries comes amid growing concerns about a shortage of qualified staff, partly in information technology, a sector whose growth has made it one of the main engines of the Indian economy.

Microsoft’s Indian operation last month warned that a lack of computer science PhDs could threaten India’s future as the world’s IT services outsourcing hub.

Another Asian country where salaries are rising at double the pace of inflation is Indonesia, the world’s fourth-largest country by population. Executives there can expect salary increases of 11 per cent this year and 12 per cent in 2008, while the inflation rate is seen reaching 6.3 per cent this year and 6 per cent in 2008.

Venezuelan executives are enjoying the highest rise in salaries in nominal terms, slightly above 20 per cent both this year and next, but that is offset by a rate of annual inflation that is anticipated to reach 22.5 per cent next year.

Meanwhile, 64 per cent of employers in the Asia-Pacific region are investing in training as an incentive to retain staff but only 27 per cent invest in salary increases, according to a separate survey published on Wednesday by Mercer, the consultancy.

The survey also found that the most pressing challenge for employers – reported by 92 per cent of the 750 organisations questioned – was attracting and retaining the right talent, especially for activities such as engineering, sales and marketing

Food for thought for financiers

When executive education students go on field trips to India, they usually head to big corporate headquarters in cities such as Bangalore, where they can see the country’s high-tech industry at work. They do not often find themselves walking the streets of Mumbai, following a group of delivery men dressed in white cotton kurtas and Gandhi caps and carrying tins of curry, rice and chapattis.

But this is what a group of financiers found themselves doing as part of an executive education programme designed by Duke Corporate Education. And Duke CE is not the only institution to have become interested in the work of these delivery men.

Papers have been written analysing their efficiency by, among others, Singapore’s National University and Mumbai’s National Institute of Industrial Engineering. and in 2004, Harvard Business School published a case study of the system.

The dabbawallas, as they are known, are part of a 5,000-strong workforce that every day collectively rushes tens of thousands of tiffin boxes (stacked cylindrical tins of food) across the city. The meals are cooked in the morning by wives, sisters and maids and – using a relay system in which each meal changes hands several times – they reach the right person by lunchtime.

The entire process takes place in a matter of hours. In an unusual example of reverse logistics, the empty tins are collected after lunch and, using the same system, are returned to the housewives who packed them with food earlier that day.

The dabbawallas, “dabba” meaning lunchbox and “walla” meaning the person associated with the trade, work with the most basic equipment. No databases, software or barcode scanners are used. And instead of trucks or aircraft, they rely on their feet, their heads, bicycles, carts and the luggage compartments of the trains that make up Mumbai’s extensive suburban rail network.

Once they have collected the tins from their clients, the dabbawallas head to the railway station, where they sort their cargoes according to destination and pack them into the luggage compartments of commuter trains.

A coded system of numbers and signs painted on top of each tin directs it to the correct office, school or government building, as well as to the right floor and room. Few of the dabbawallas are educated. Many are illiterate. And yet every day they deliver more than 170,000 individual meals with almost no mix-ups.

“Our computer is in our head and our Gandhi cap is the computer cover to protect it from the sun or rain,” says Raghunath Medge, head of the Nutan Mumbai Tiffin Box Suppliers Charity Trust, the association that governs the dabbawallas. He carries in his pocket the business card given to him by celebrated strategist CK Prahalad, professor of corporate strategy at Michigan University’s Ross School of Business, a fan of the dabbawallas.

Supply chain management

This low-tech approach to an extremely complex and accurate system fascinates academics. Mr Medge is invited to business schools across India and overseas to talk about his organisation’s approach to supply chain management. Although he speaks no English, he appears at events with titles such as “Impeccable Logistics and Supply Chain Management” and has made presentations to institutions such as India’s Strategic Communication for Management and the Confederation of Indian Industries.

As well as academic papers, insights into Mumbai’s extraordinary lunch-delivery system are shown to business executives and students on screen. The film Dabbawallas, made by Paul Goodman, director of the Institute for Strategic Development Carnegie Mellon University, is shown at business schools and sold for use in executive training programmes. Prof Goodman believes the dabbawallas can offer managers and students another way of looking at supply chain issues.

He argues that the reason the dabbawallas have attracted the attention of the corporate world is because their system so clearly demonstrates the fact that technology is not the only ingredient necessary for achieving efficient logistics operations. “These people do it with what I call human and social ingenuity,” he says “And that’s why it resonates with managers because smart managers know that technology is only part of the solution to complex supply chain issues.”

Another characteristic of the system that offers lessons for the corporate world is its reliance on teamwork, with each dabbawalla acting as a vital link in the chain, something Hindustan lever, the consumer goods company that is part of Unilever, has picked up on. Every year, it sends a handful of managers to spend a week following the dabbawallas, as part of its teambuilding efforts.

Cultural experience

“There’s an incredible amount of interdependence within the systems and that’s why companies are interested,” says Prof Goodman. “And it’s an example of a high reliability, complicated system that’s very customer- focused.”

Bob Reinheimer, executive director of Duke CE, designed the programme for the financial services executives and accompanied them to India. He found that customer focus was the most important element of what he hoped the executives would learn from meeting the dabbawallas.

On their trip to India, the executives were asked to consider an answer to the question: “How can we use technology and other means to create true customer intimacy on a global scale?” After researching the question, the executives would then report to their board on what their company could be doing.

“I was worried everyone would be so lost in all the technology, they might forget some of the fundamentals – pride and loyalty and those human characteristics,” says Prof Reinheimer. In addition to visiting technology companies, the participants spent a day with the dabbawallas.

First, the senior managers from the Nutan Mumbai Tiffin Box Suppliers Charity Trust gave a presentation about the history and the workings of the 100-year-old system. Then the executives were assigned to one of six different dabbawallas, shadowing them on their distribution routes, watching the sorting process taking place outside railway stations and following them through the streets until the meals reached their intended recipients.

“The first thing was that the executives saw it as a very interesting cultural experience – and there’s nothing quite like it,” says Prof Reinheimer.

“But then we pushed deeper and it came down to understanding that customer intimacy has to do with enduring relationships, dependability of service and workers themselves having pride in membership.”

And the experience seems to have paid off.

“In their report to the board six months later, you could hear the lessons they had learned from the dabbawallas,” says Prof Reinheimer.

“That had informed their thinking and it was very much part of their final report.”

13 Indian firms among Asia's 100 fastest-growing

Thirteen Indian firms have been named in a list of 100 fastest-growing small and mid-size Companies in Asia, with some emerging on top in terms of sales and capital returns.

According to 'Asia's Hot Growth Companies' list, prepared by US-based financial magazine BusinessWeek, India is home to a higher number of such Companies than China, whose presence is limited to just eight firms. Besides, India is next only to Taiwan and Japan, which have been represented by 24 and 18 firms respectively.

There are 13 firms from Hong Kong, seven from Korea, four from Malaysia, nine from Singapore and two from Thailand.

The single firm from Pakistan is Packages Limited, a manufacturer of paper products is ranked at the 84th position.

Among the Indian firms, Lakshmi Machine Works is ranked 17th, followed by Kirloskar Brothers (18th) and Godrej Consumer Products (23rd).

Other Indian Companies named in the list are Marico (40), Colgate-Palmolive India (45), Hexaware Technologies (53), GlaxoSmithkline Pharmaceuticals (60) Panacea Biotec (68), Bajaj Hindustan (72), Motherson Sumi Systems (79), Cummins India (83), I-flex Solutions (93) and Titan Industries (98).

Hong Kong-based Ajisen Holdings has been ranked at the top, followed by Raffles Education of Singapore.

In terms of highest sales in 2006, three Indian firms -- Cummins India, Titan Industries and I-flex Solutions – are ranked first, second and third, respectively.

Cummins -- which manufactures diesel, gas, and dual fuel engines for power generation and other industrial purposes -- had sales of 498.8 million dollars, while Tata Group's Titan Industries recorded revenues of 491.2 million dollars.

Information technology solutions provider I-flex raked in sales of 484.3 million dollars.

In terms of three-year average return on capital, Godrej Consumer was ranked on top across Asia with 106.7 per cent. Godrej Consumer and Marico were named as the second and third biggest Companies with a return of 57.7 per cent and 57.2 per cent respectively on the basis of capital return last year.

Based on market value, I-Flex was ranked at second position with a value of about four billion dollars.

The overall list took into consideration parameters like sales, profit, capital returns and market capitalisation.

"They are in decidedly less sexy lines of business, everything from noodle shops to chemical fiber manufacturing. But these Asia stars do enjoy some big advantages, like relatively high barriers to entry and growing demand from Asia's newly affluent consumers," the magazine said.

In an accompanying report, BusinessWeek said that annual scorecard of top 100 small and midsize businesses
Thirteen Indian firms have been named in a list of 100 fastest-growing small and mid-size Companies in Asia, with some emerging on top in terms of sales and capital returns.

According to 'Asia's Hot Growth Companies' list, prepared by US-based financial magazine BusinessWeek, India is home to a higher number of such Companies than China, whose presence is limited to just eight firms. Besides, India is next only to Taiwan and Japan, which have been represented by 24 and 18 firms respectively.

There are 13 firms from Hong Kong, seven from Korea, four from Malaysia, nine from Singapore and two from Thailand.

The single firm from Pakistan is Packages Limited, a manufacturer of paper products is ranked at the 84th position.

Among the Indian firms, Lakshmi Machine Works is ranked 17th, followed by Kirloskar Brothers (18th) and Godrej Consumer Products (23rd).

Other Indian Companies named in the list are Marico (40), Colgate-Palmolive India (45), Hexaware Technologies (53), GlaxoSmithkline Pharmaceuticals (60) Panacea Biotec (68), Bajaj Hindustan (72), Motherson Sumi Systems (79), Cummins India (83), I-flex Solutions (93) and Titan Industries (98).

Hong Kong-based Ajisen Holdings has been ranked at the top, followed by Raffles Education of Singapore.

In terms of highest sales in 2006, three Indian firms -- Cummins India, Titan Industries and I-flex Solutions – are ranked first, second and third, respectively.

Cummins -- which manufactures diesel, gas, and dual fuel engines for power generation and other industrial purposes -- had sales of 498.8 million dollars, while Tata Group's Titan Industries recorded revenues of 491.2 million dollars.

Information technology solutions provider I-flex raked in sales of 484.3 million dollars.

In terms of three-year average return on capital, Godrej Consumer was ranked on top across Asia with 106.7 per cent. Godrej Consumer and Marico were named as the second and third biggest Companies with a return of 57.7 per cent and 57.2 per cent respectively on the basis of capital return last year.

Based on market value, I-Flex was ranked at second position with a value of about four billion dollars.

The overall list took into consideration parameters like sales, profit, capital returns and market capitalisation.

"They are in decidedly less sexy lines of business, everything from noodle shops to chemical fiber manufacturing. But these Asia stars do enjoy some big advantages, like relatively high barriers to entry and growing demand from Asia's newly affluent consumers," the magazine said.

In an accompanying report, BusinessWeek said that annual scorecard of top 100 small and midsize businesses

Season 2008 - Force India to announce drivers in Monaco

Force India will reveal their 2008 driver line-up in Monaco next month.



The driving strength, which will make it's Formula One debut next year following Vijay Mallya's purchase of the Spyker squad in September, will be unveiled by the team owner when he addresses the Motorsport Business Forum on December 5.

"From a business point of view, Monaco in early December is the ideal place and time to introduce the Force India F1 concept to the great and good of the global motor sport industry," Indian billionaire Mallya told newspaper The Asian Age.

The shortlist of drivers for the team seems to be growing by the day. German Adrian Sutil (pictured), who is virtually certain to miss out on a Toyota drive in 2008 to his countryman Timo Glock, is under contract for next year.

But, with that contract being signed under the team's former guise as Spyker, there is speculation as to whether Force India will want to, or need to honour it.

Add in the rumours linking him to a McLaren seat alongside Lewis Hamilton, plus former target Karun Chandhok's decision to focus on GP2 for another year, and half the F1 field are potential candidates.

Toro Rosso refugee Vitantonio Liuzzi and Honda reserve driver Christian Klien tested for the team at Barcelona and would appear to be the favourites.

But Williams tester Narain Karthikeyan is still a strong candidate due to Mallya's hopes of running an Indian driver, and GP2 driver Roldan Rodriguez, who will have a number of tests over the Winter, insists he still has a shot.

Established names such as Ralf Schumacher and Giancarlo Fisichella are still without drives for 2008 as well, giving Mallya a healthy pool of talent from which to choose his line-up.

Planet Hollywood enters Indian market with hotel in Mumbai

With a long list of shining celebrities and a two-day unique Hollywood-style bash to grab attention, London entrepreneur Robert Earl re-launched Las Vegas Strip mega resort Planet Hollywood and announced going international by starting five such hotels in India on a planned investment of $15 million.

Earl, 56, the man who invented the Planet Hollywood restaurant chain in which the famous Hollywood actors like Sylvestor Stallone, Bruce Willis, Demi Moore and others have a stake, said, "We are expanding our restaurants and India, due to its strategic postion, was an obvious choice".

"We expect to open our first restaurant in Bollywood and the other four will be in New Delhi, Bangalore and other major metros," he said.

Planet Hollywood is about popular culture and the celebration of all forms of entertainment and Mumbai, which is home to Bollywood, is the huge capital of entertainment. That is what makes this a perfect marriage, Earl told PTI during the relaunch ceremony.

"PH hotels in India will be a unique idea like our other hotels. The moment a traveller will enter the lobby, it will create a mood that is both hip and frenetic. The rooms will not only be elegant, but we will feature memorabilia in each room and the rooms will be a tribute to a specific celebrity or film.

"No two guest rooms will have the same pieces in them, so with each return visit, you will have a different look in your room," he said.

India and Russia plan for joint trip to Moon

The countries of India and Russia have signed an agreement to jointly develop a research-and-exploration mission that will orbit and land on the Moon, probably around 2011 to 2013.

The agreement was officially signed in Moscow, Russia, on Monday, November 12, 2007, by Anatoly Perminov, director of the Russian Federal Space Agency (RKA), and Gopalan Madhavan Nair, administrator of the Indian Space Research Organization (ISRO).

It was announced by Indian Prime Minister Manmohan Singh and Russian President Vladimir Putin while Singh was discussing various national interests at the Kremlin. The space agreement would extend out to the year 2017.

The lunar lander/rover will be headed up by the Indian ISRO, while the lunar lander, which will include a scientific laboratory and moon rover, will be the charge of the Russian RKA. Both the orbiter and lander/rover, called Chandrayaan-2, would be placed into one payload to be launched by a Indian geostationary satellite launch vehicle (GSLV).

Currently, Russia, by itself, is working on an unmanned mission to the Moon, Luna-Glob, scheduled for departure in 2010. A second mission, in unison with India, will target a Lunokhod unmanned rover onto the Moon's surface in 2011.

India is working on its first lunar probe, the Chandrayaan-1 orbiter, which is scheduled to be launched in April 2008.

Nine prominent Indians receive inaugural Australia-India Council Special Awards

Nine prominent Indians were awarded the Australia-India Council Special Awards on Monday evening, an honour recognising their exceptional contribution toward strengthening Australia-India relations.
The awards were presented to Tarun Das (business), Dr Jasleen Dhamija (art), Dr Jamshed Irani (bilateral relations), Mr O P Jain (culture), Mr Suresh Kalmadi (sports), Mr S K Misra (conservation), Dr Rajendra K Pachauri (environment), Professor Santosh Sareen (education) and Mr Soli Sorabjee (law).
An initiative of the Australia-India Council (AIC), the awards were presented at a ceremony at the Australian High Commissioner, Mr John McCarthys residence in Delhi, with several members of the Council present. The awards were presented by the High Commissioner and Mr Darren Gribble, Chairman of the AIC and a former Australian High Commissioner to India.
The Australia-India Council was established to forge people-to-people linkages between our countries 15 years ago, said McCarthy.
After over a decade of building upon the initiative, the Council wanted to express its appreciation to the extraordinary people who exemplify its goals, McCarthy added.
I congratulate each award recipient for their valuable role in fostering people-to-people relations between Australia and India, said Gribble.
Delivering acceptance of award speeches, six of the nine awardees who were present, praised the progress being made in India-Australian bilateral ties.
The two standout speeches for their brevity, simplicity and humour were that of Dr.Jamshed Irani, Chairman, India-Australia Council and Director of Tata Sons Limited, and Soli Sorabjee, former Attorney General of India and senior Supreme Court advocate. Irani said that he was not deserving of the award, and said it reflected in an essence the improving ties between the two countries in various spheres.
Sorabjee said that he was accepting the award with humility, and said that it represented for him the advances being made in bilateral legal cooperation, where India and Australia were both taking expertise on law from each other. On a humourous note, he urged former High Commissioner Gribble to do his utmost to get Australian jazz bands to India to perform. Sorabjee is a known aficianado of jazz music, and plays a lead role in organising jazz concerts and festivals across the country.
Suresh Kalmadi was another who delivered a standout speech on sporting relations between the two countries. He said the award was a recognition of the two countries attaching importance to sports, especially events relating to the Olympics and the Commonwealth Games. he recalled his joy of witnessing the Sydney Olympics and the Melbourne Commonwealth Games, and said that the 2010 New Delhi Commonwealth Games would be the best yet.
AIC Special Awards will also be presented to four prominent Indians in Chennai later this week. These include luminaries in business, sports, education, bilateral relations and community service.

Russia offers India investment option in uranium project in Siberia

Russia has offered India the option of investing in its upcoming international uranium enrichment centre at Angarsk, Siberia, in lieu of paying for nuclear fuel to be supplied to the Koodankulam nuclear station, which is being built with Russian assistance.

At the delegation level talks between India and Russia during the Prime Minister, Dr Manmohan Singh’s recent Moscow visit, the Russians indicated at the possibility of India investing in the centre as one of the ways for India to pay for the nuclear fuel to be supplied the Koodankulam plant in Tamil Nadu.

“The Russian Government has proposed that fuel supplies from the Angarsk facility could be considered for units being set up through Russian assistance in the country. The investments that India might make in the Angarsk enrichment centre would, in such a scenario, be considered as payment for the uranium fuel to be supplied to Koodankulam,” a Government official involved in the exercise said.

Russia has committed to refuel the Koodankulam station throughout its service. The project’s first unit, being built in collaboration with Russian firm Atomstroyexport, is likely to be commissioned in the second half of 2008, the second one in 2009.
Angarsk centre

The Angarsk International Uranium Enrichment Centre is being set up by Russia for supply of uranium to countries with nuclear energy programmes under the International Atomic Energy Agency (IAEA) safeguards. Russia is establishing the project in collaboration with countries such as Kazakhstan under the supervision of the nuclear watchdog at the Angarsk Electrolysis Chemical Plant in Eastern Siberia.

India is currently in the process of approaching the IAEA for negotiating India-specific safeguards.

Russia is currently helping build two nuclear units with 1,000-MW light water reactors at Koodankulam and talks are in advanced stages for collaborations on four additional units at the same site in the wake of the pact reached between India and Russia in January this year.

While Russia’s Federal Atomic Energy Agency representatives have earlier indicated at the possibility of India being included in the Angarsk project during bilateral meetings held earlier this year, Moscow has clearly linked India’s participation in the project to the lifting of Nuclear Suppliers Group (NSG) restrictions in the wake of Indo-US nuclear deal, officials said.

Russia had proposed setting up the centre early last year, in the backdrop of tensions over Iran’s nuclear ambitions, as a way to safeguard nuclear non-proliferation goals by providing uranium fuel to countries intent on building nuclear power plants, while making sure they do not develop nuclear weapons programmes. According to reports, there has been a general consensus among NSG members about Russia conducting enrichment at such a standalone facility.

The Angarsk facility has traditionally been associated with Russian civilian nuclear programme and had been kept completely out of the erstwhile Soviet Union’s atomic weapons programme, thereby, making it easier for the plant to be put under IAEA control. The Centre is expected to produce only low-enriched uranium, which cannot be diverted for building nuclear weapons. Uranium enriched to low levels can be used as fuel for nuclear power plants, but higher levels of enrichment make it possible to divert the fuel for the construction of the core of a nuclear bomb.

Merrill makes big play in India

Merrill Lynch has launched its biggest foray into India’s real estate market, joining a growing number of foreign financial institutions seeking to tap into the fast-growing but volatile sector.

The US bank is paying about $377m for a 49 per cent share in a portfolio of residential projects managed by DLF, the country’s largest listed developer, in one of the biggest deals of its type in India.
Timothy Grady, head of global commercial real estate Asia Pacific for Merrill Lynch, said: “This partnership and these projects reflect our continued belief in and support for India”.

Wall Street investment banks have descended on India’s real-estate sector looking for opportunities since the government relaxed rules governing foreign investment in 2005.

Participants range from the proprietary arms of investment banks, such as Whitehall, Goldman Sachs’s real estate fund, to specially established Indian real estate funds.

Indian developers have also raised more than $7bn on India’s stock market and London’s Alternative Investment Market since August last year, according to estimates by Ernst & Young and the Federation of Indian Chambers of Commerce and Industry.

DLF said Merrill Lynch was buying the stake in seven “mid-income” residential projects spread across Chennai, Bangalore and Kochi in southern India and Indore in the north. The projects would take seven to eight years to complete.

The transaction, Merrill Lynch’s sixth in Indian real estate, brings its investment in the sector to about $550m.

The preferred mode for most foreign institutions had been to invest alongside the major developers, said Sri Rajan, head of Bain & Company’s private equity consulting practice in India.

Greenfield investments remain challenging for foreign investors in India because of the problems of acquiring blocks of land large enough for big projects.

Late last year, JPMorgan announced its first investment on its own balance sheet in Indian property, paying $60m for a stake in a residential project being developed by Mumbai group, Lodha Builders.

Analysts believe there will be an increasing number of such equity tie-ups as Indian developers hunt for capital.

The Reserve Bank of India, the central bank, has clamped down on foreign lending to the sector to help contain inflation and to ease pressure on the rupee, which has been appreciating against the dollar.

DLF said of the deal: “DLF continues to remain focused on keeping its net economic interest in homes business to a 10-year horizon.”

Om Shanti Om scores over Saawariya in the biggest-ever Bollywood box office battle

Tellingly, in Delhi's Chanakya theatre, the first week started with two shows of OSO and three of Saawariya, the second week's plans had four shows of OSO and only one of Saawariya.

The international figures are more clear and decisive. At the UK box office, OSO made a massive £5,18,845 at No. 7, just a little short of Tom Cruise's earnings of £6,58,282 for Lions For Lambs which opened No. 6, while Saawariya made £160,985 at No. 12. In the US, OSO opened No. 11 with $1.8 million while Saawariya came 24th with $542,000.

It's not as though people have not been disappointed in OSO. They have found it too clever, too boring in the second half. It's a film for Bollywood buffs than the general janta who may miss out on many of its allusions to the '70s Bollywood. But more people have been disappointed by Saawariya. Angry viewers have walked out in the middle and even demanded refund of their tickets. London filmmaker and critic Nasreen Munni Kabir felt Bhansali's version of Fyodor Dostoevsky classic White Nights comes across as "a film alive in the mind of the filmmaker and failing to come alive on screen...It did not move the audience and felt claustrophobic on those blue sets." A common audience response was summed up by the remark of a sardar kid sitting next to me who complained to his mother for bringing him to a film where "subah hoti hi nahin" (there is never a morning).

Saawariya might flop in theatres yet still make profits through sale of DVD and TV rights. But Vinod, Amod and Komal predict it will lose about Rs 20-25 crore. On the other hand, OSO has clearly increased SRK's already strong brand equity, says Vinod. And made Farah Khan a name to reckon with in Bollywood, the only successful woman filmmaker in a male world.

Amod thinks OSO will be SRK's fourth biggest after DDLJ, K2H2 and K3G. They project net gains of Rs 12-15 crore in Mumbai and Rs 20-25 crore in the overseas market alone. But SRK wants OSO to be the biggest film of his career. Will OSO rise up to that? Even if it makes the most money, will it have the resonance, the positive upsurge of a Chak De? As SRK as Om in OSO would say, "Picture abhi baki hai dost". It's still not The End.
It's a box office battle that has been more keenly contested than the general elections. The campaign started two months ahead with both contestants pulling out all stops to woo audiences from every platform—magazines, newspapers, TV channels, radio, style awards, fashion events, cricket matches and advertisements. They agreed to sing and dance in TV talent contests, launched their own lines of clothes, got into frenzied media tie-ups and feverishly promoted myriad brands. Issues like the nuclear deal took a backseat as the whole nation debated whether Om Shanti Om or Saawariya would emerge winner in what seemed set to be a neck-to-neck race. Amul even devised an ad around them: Savouriya, Eat at Om.

This Diwali weekend, the early indicators declared that Badshah Khan is one up on the Sony Pictures-Sanjay Leela Bhansali combine; SRK's one-man show has routed the first-ever Hollywood-Bollywood joint venture; and OSO is the loud cracker, while Saawariya hasn't quite set the screens on fire.

In Bollywood, it's hard to find proper accounting of a film's earnings. We haven't been able to develop a single, foolproof, standardised method of measuring a film's box-office success. Trade pundits are known to have stupidly miscalculated the potential of cult films like Rang De Basanti and Chak De! India, but celebrated duds like Himesh Reshamiyya's Aap Ka Surroor. So, while no definite figures are available on the two Bollywood biggies, for a change there is unanimity amongst the trade fraternity that OSO is a blockbuster, perhaps the biggest this year, while Saawariya is finding the going tough after a good start.

With his characteristic humour, SRK said they couldn't give a figure for OSO's earnings "because it's taking time to count the money". Unofficially, the distributors Eros are claiming it to be their fastest money-spinner, that will do the business of their other big 2007 hit, Partner, in just two weeks. They had paid Rs 75 crore for the film's distribution rights, a humungous amount which they hope to recover in one week itself. On the other hand, Sony Pictures claimed to have grossed Rs 50 crore in the first weekend in India, a figure arrived at through "a process which tracks down collections at the grassroots". Trade analysts were quick to rubbish it. "It takes time to know conclusive figures," said Amod Mehra. "It's impossible to get such figures with so many prints in circulation and with varied ticket prices," says trade analyst Vinod Mirani. "If Saawariya has made Rs 50 crore, then OSO would have made Rs 200 crore," says Komal Nahata, editor, Film Information.

Amod is merciless, saying Saawariya had only 70 per cent collections in the first weekend, Komal is even more brutal pegging them at a mere 35-40 per cent all India with 70 per cent in Mumbai and Delhi. However, trade site Ibosnetwork claims OSO opened with 90-100 per cent collections in multiplexes and a little less on single screens, while Saawariya opened at 80 per cent on Friday, then came down to 70 per cent on Saturday and just 50 per cent on Sunday. Boxofficeindia.com claims OSO opened to 95-100 per cent response while Saawariya started off 95-100 per cent at the multiplexes and 80-85 per cent in small screens, but collections had begun falling alarmingly to 30-35 per cent on Monday even as OSO held steady at 80-90 per cent. "The collections dropped faster than Ranbir's towel," says Komal, tongue-in-cheek. But Sony claims the fall was natural and that the positive word of mouth for Ranbir and Sonam was still pulling in the crowds.

Corneal Cross Linking Treatment for Keratoconus now in India

The method works by increasing collagen cross linking, which are the natural anchors within the cornea

Corneal Collagen Cross linking with Riboflavin (C3-R), a treatment for keratoconus, a disease of the cornea, recently was pioneered in India by Mumbai's Dr Vinay Agarwal of Clear Vision Eye Centre, a corneal surgeon specialising in keratoconus management.

Keratoconus makes the cornea become weak and it may gradually bulge outward. Most often, this bulging is in the lower half of the cornea and first presents as astigmatism. "However, not all astigmatism is due to keratoconus. In mild or early stages of Keratoconus (forme fruste keratoconus), eyeglasses may correct the astigmatic vision," informs Dr Agarwal.

C3-R has been proven to strengthen the weak corneal structure. This method works by increasing collagen cross linking, which are the natural anchors within the cornea. These anchors are responsible for preventing the cornea from bulging out and becoming steep and irregular, consequence of advanced keratoconus.

Dr Agarwal has successfully performed corneal cross linking on a number of patients from across the country and abroad. He says, "Corneal Cross Linking is the first real treatment for my keratoconus patients. The achievement of stabilisation is a dramatic event in the life of these patients with a disease that is otherwise progressive and affects both eyes."

The 30-minute non-invasive C3-R treatment is performed in the doctor's office. During the treatment, custom-made riboflavin eye drops are applied to the cornea, which is then activated by ultraviolet light. This amazingly simple process has been shown in laboratory and clinical studies to increase the amount of collagen cross-linking in the cornea and strengthen the cornea. In published European studies, such treatments were proven safe and effective in patients.

The abnormal curvature of the cornea due to keratoconus changes the cornea's refractive error producing moderate to severe blurriness of vision. "As keratoconus advances, rigid gas-permeable (RGP) contact lenses maybe the only non-surgical way to achieve clear vision," says Dr Agarwal. If the disease continues to advance, scarring of the central cornea may occur.

Approximately, half of keratoconus patients have no negative lifestyle effects beyond corrective lenses. The cornea stabilises after a few years without ever causing severe vision problems. For others, the only resolution to keratoconus has been penetrating keratoplasty (PKP), with a long healing period and unpredictable refractive error. Even after corneal transplant PKP, keratoconus can reoccur in the new donor cornea.

‘Chak De India’ Wins Big At V.Shantaram Awards

First the critical acclaim, then the box-office success and now the industry acclaim! In what could be just the start of an award rich season, ‘Chak De India’, the inspirational sports blockbuster from Yash Raj Films was the big winner at the V. Shantaram Awards. The Shimit Amin directed film won for Best Film, Best Director, Best Actor, Best Editor and Best Sound sweeping aside all competition.

The V. Shantaram Awards are considered a sign of the industry’s recognition for its best achievements and are similar in that to the Oscar awards. It is also unique in the fact that films from all over the country are eligible for the awards.

Said Yash Chopra, Chairman, Yash Raj Films, “We are extremely proud of ‘Chak De India’ and being awarded ‘Best Film’ by jury of distinguished film personalities makes it even prouder. These honours only strengthen our resolve to create unique films that not only resonate with audiences across the country, but also stand the test of time, as I believe ‘Chak De India’ will”.

India's economic muscle power growing

India is basking in the success of economic reform. Its GDP growth hit 9.4% for the fiscal year ending March 2007. Signs of its rapid growth are visible on India's streets, from new cars to new houses. A new middle class has sprung up, eager to indulge themselves in modern-day conveniences such as mobile phones and computers.

But most experts don't think the country can sustain this kind of growth. Goldman Sachs analyst Tushar Poddar suggests growth is around 8%, driven mostly by gains in productivity. Other analysts say it is closer to 6.5% because of infrastructure problems the country faces.

But don't tell this to India's government officials. The central bank's deputy governor, Rakesh Mohan, said the growth trend of the past few years indicates the economy has entered a new phase of stronger expansion.

"Most importantly, the current growth is not a flash in the pan and is exhibiting signs of sustainability along with financial stability, notwithstanding the pressures from unforeseen external shocks," Mohan said.

India’s Planning Commission is targeting annual growth of 9% over the next five years. That's a big jump and would move the economy's momentum closer to neighboring China, which is sustaining growth of about 9-10%.

India’s head of the Planning Commission, Montek Singh Ahluwalia, says, "We are currently projecting an average growth rate of 9 percent for the next five years. Many people think that's a bit under ambitious, given it was 9.4 percent last year."

India does indeed face some tough problems if it wants to sustain the 9% growth rate Planning Commissioner Ahulwalia says can happen. Lack of infrastructure tops the list of concerns it has to overcome.

When India’s economy was growing at 6-6.5%, infrastructure was less evident. But at 9% growth, the country will need to increase the amount of money needed for communications, rail and roadways from 5% spent in 2006-07 to around 9% by the end of the five-year period.

But the money won’t entirely come from the government. It simply can’t mobilize resources fast enough and on such a large-scale effort.

So the country is relying on the funds to come from their newly developed public-private partnerships. In fact, about three-quarters of the increase will be privately funded. Getting that kind of money from the private sector is not easy.

Historically, industrialized countries fund their infrastructure needs through the public sector. For example, China relies on public-sector banks.

India is encouraging its growing business sector to take some of the risk in funding infrastructure projects whenever possible. It’s already happened with the country’s telecommunications industry. When constraints were relaxed, a huge amount of money came in and was used very efficiently.

The same thing happened with Mumbai International and Delhi International Airports. Both were modernized with public- and private-sector funding.

Another driving factor in India’s five-year growth plan is the country’s rising middle class. The middle class currently numbers some 50 million people, but by 2025, that number will expand dramatically to 583 million people -- some 41% of the population.

India’ s middle class includes young college graduates to mid-level government officials, traders and business people. They enjoy a lifestyle that most of the world would recognize as middle class. They typically own a television, a refrigerator, a mobile phone and perhaps even a scooter or a car.

The upper end of the middle-class segment includes senior government officials, managers of large businesses, professionals and rich farmers. Successful and upwardly mobile, they are brand-conscious, buying the latest foreign-made cars and electronic gadgets. They are likely to indulge in an annual vacation, usually somewhere in India.

Both segments of the middle class are demanding more from the government, including better education and healthcare.

And the country is responding. For example, drive down Bannerghatta Road in Bangalore, the heart of India’s Silicon Valley, and you'll see big-name American institutions such as Baltimore's Johns Hopkins and Boston’s Tufts University Medical School.

While experts argue whether India will sustain 6.5% or 9% growth a year, one thing is certain: India will continue its run as a growing economic power bringing with it dozens of potentially rewarding investment opportunities.

Gitanjali Gems acquires US-based Rogers

Gitanjali Gems has acquired US jewellery retail chain Rogers for an undisclosed sum, a move that will boost the company’s retail presence in India and abroad. This is the company’s second largest acquisition in the world’s largest jewellery market.

Privately-held Rogers is headquartered in Middletown, Ohio and operates 46 retail stores under brand names 'Rogers Jewelers' and 'Andrews Jewelers'. Rogers has revenues of $80 million.

This acquisition will enable Gitanjali to leverage Rogers' existing retail infrastructure and access US consumers, the company said in a release issued today.

Gitanjali Gems is looking at raising capital for its acquisition and expansion plans. It has proposed to garner around Rs 320 crore by issuing 10 million convertible equity warrants to the promoters on a preferential basis.

In last December, the company bought US-based Rs 450-crore jewellery chain Samuels, marking its maiden acquisition in the gems and jewellery space. Samuels has 100 stores in the US, with sales of Rs 500 crore and a back-end capacity for 150 new stores.

The acquisition enabled the company to cut down at least three layers of middlemen in diamond polishing and manufacturing and gaining control of the value chain.

Gitanjali has already expressed its intention to create brands for the US market. Earlier this year, the company bought 70% stake in Tri-Star Worldwide, a Canada mark licensee and a direct customer of BHP Billiton. The tie-up would enable Gitanjali to increase its diamond sourcing from the Canadian mine.

The company plans to invest Rs 100 crore over two years for its domestic retail plans. It is in the process of establishing luxury malls and introducing international brands in the country.

Acquisition spree

November 2007: Snapped up US retail jewellery chain Rogers

February 2007: Acquired 70% stake in Canada-based Tri-Star Worldwide, a branded diamonds and jewellery maker, for an undisclosed sum

December 2006: Snapped up 97% stake in US-based Samuels Jewelers, a jewellery retailer, for Rs 100 crore