Tuesday, November 10, 1998
today's calendar
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B U S I N E S S | Tuesday, November 10, 1998 |
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spotlight today's calendar |
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Why the big two are small
partners 'Cash
in on death of distance' Farm
intelligence system needed |
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Two new Maruti models Montek:
6 per cent growth rate this year IOB
first to tackleY2K bug
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Autoroam launched by Tata
Cellular JK
assured of grain supply NRI
forum mooted Videocon
sells power project stake Limit
raised |
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Why the big two are small partners SHANGHAI, Nov 9 (PTI) — Despite frequent political differences that have characterised Sino-Indian relations, trade between the two countries has steadily grown during the 90s to record an annual growth rate of over 25 per cent. Even as the turnover of the bilateral trade totalled $ 1.83 billion last year, industry experts here say business between the two Asian neighbours - which is barely half a per cent of China’s foreign trade and less than 2 per cent of India’s - stands hampered by lack of information on opportunities on either side and slackness on the part of Indian businessmen to aggressively seek a share in the growing Chinese pie. “There is a great potential for developing bilateral trade specially in technology areas which can be beneficial for both nations, but there’s hardly any information on business opportunities in India,” says Prof Wang Hongyu, Director Shanghai Academy of Economy Sciences. While more and more businessmen across the world are increasingly looking towards the Chinese market, where imports were to the tune of $ 138.8 billion last year, Indian businessmen and goods are barely visible, says Prof Wang observing that “Indians are losing out on promotion.” According to Prof Wang Indian Fruits, specially mangoes, cashewnuts, perfumes and artefacts have a ready market. Once Indian music and films too were very popular, recalls Wang, an expert on South Asia, adding it was “Awaara” which drew him towards the subcontinent. Besides such items peculiar to India, information technology is another field in which Indians with their strength in software, can make inroads into the middle kingdom, says Dr Shahul Hameed, chief representative of the confederation of Indian Industry, which set up an office here last year. Although the National Institute of Information Technology (NIIT) has made forays into China, it’s mostly focused on educational training, says Mr Hameed, noting that CII has suggested NASSCOM (National Association of Software and Service Companies) to bring a delegation of software companies to explore the market here. The idea of opportunities in the field can be gauged from a CII report, prepared by the Shanghai office: “The country at present has 8,20,000 Internet connections, a projected need of 20 million personal computers by 2000 AD and plans to inject about $ 54.2 billion in developing communications facilities in the next three years. About 14 Indian companies - Ranbaxy, Tata, RPG to name a few - are doing business in China, while Indian Rayon and Larsen and Toubro are in the process of setting up joint ventures. Many Indian businessmen are also visiting the country in individual capacity, specially in the area of chemicals, pharmaceuticals, marine and agro-products. Even as language poses a big communication gap, an Indian doing business here, notes that the professional attitude of people and well laid rules have rendered the middle kingdom more foreigner-friendly than India. A point admitted by an Indian diplomat here: “Even though our (Indian) policies are sound, our interface is poor.” Small irritants like not turning up in time for a business appointment, delay in providing product or business details or not sticking to schedules, makes Indians not too good partners to do business with, says the businessman. Even as China’s external trade witnesses a rate of growth three times that of the world and its 1996 figures show a modest surplus of $ 12.2 billion, its exports grew by only 1.5 per cent to $ 151.0 billion while imports grew by 5.1 per cent to $ 138.8 billion. However, as far as India
is concerned, New Delhi enjoyed a minuscule surplus
during the early 90s but last year China had a marginal
balance of trade surplus amounting to $ 35.8 million. |
Two new Maruti models next year NEW DELHI, Nov 9 (UNI) — Maruti Udyog Limited (MUL) has decided to roll out two new models in the Indian market in 1999 to supplement Zen and Esteem. MUL Chairman and senior Suzuki Motor Corporation official Y. Saito is visiting India this week to finalise the details of the new models and chalk out the roll-out schedule, a senior industry ministry official told UNI here today. The new models are part of MUL’s game plan to maintain its monopoly and leadership in the passenger car market in India, the official said adding that this was stated by senior Suzuki officials at their meeting with Industry Ministry functionaries in Japan recently. The first of the two models would be a Zen supplement. “It will be in the 900cc to 1000cc category but sleeker and much better looking. This would be followed by another model, which would supplement the existing Maruti Esteem. Both the cars would be priced in the Rs 3.5 lakh to Rs 5.5 lakh price bracket,” the official said. Besides, the Japanese car major is planning to adopt a multiple fuel injection engine by 2000 to meet the stiffer vehicle emission norms during the time. The models under consideration are expected to conform to the standards, he quoted senior Suzuki officials as saying. The company would also be expanding its capacity to five lakh units. Prior to this, Maruti, in
a bid to counter the imminent competition from new small
car entrants, had launched a fresh salvo in the form of
an improved service set-up under which the vehicles would
be picked up for service and delivered back at the
doorsteps. |
Jalan: cash in on death of
distance NEW DELHI, Nov 9 — The Governor of the Reserve Bank of India (RBI), Dr Bimal Jalan, today struck an optimistic note about the future of the Indian economy stating that the sources of comparative advantage had shifted in favour of the country. “It is important for us to take a realistic view of the future, which is not one of despair but of opportunities”, Dr Jalan said while inaugurating a seminar on “Mid-term review of the Indian economy” organised by the Associated Chambers of Commerce and Industry of India (Assocham) here. Under the changed scenario of the international economy the sources of comparative advantage have shifted in favour of India, he observed. “ The time is now ripe to use our skills and adaptability to change and shape our destinies, without looking back on the difficult times we have been through”, he said. Identifying three major elements that provide the Indian economy the vital launch pad to self-sustaining growth, Dr Jalan acknowledged that demand stimulation through investment spending was imperative to kickstart the economy. The factors identified by Dr Jalan are — the death of distance, the services revolution and capital flows. The cost of transmitting knowledge has shrunk and location is no longer a major constraint as was the case earlier, Dr Jalan said while elaborating on the first factor.” There are some challenges for management , but it also opens up unprecedented new opportunities”, he added. Referring to the revolution in the services sector, Dr Jalan said that unlike in the past the growth of the services sector was increasingly becoming an important precondition for growth.” Developing countries, including India, today are becoming important sources of value added services”. Elaborating on capital constraints, the RBI Governor said the country’s domestic savings were high enough and the critical thing today was of supplementary capital. Dr Jalan called upon the
industry to take note of the economic situation in
1994-95 and 1995-96 , when the industry was growing
steadily even as the macro-economic indicators like the
rate of inflation,foreign exchange reserves and the rate
of interest were not as healthy as it is now. |
Montek: 6 per cent growth rate this year NEW DELHI, Nov 9 (PTI) — Planning Commission member Montek Singh Ahluwalia today asserted that the economy would grow by about 6 per cent this fiscal though the government’s fiscal deficit targets may come under pressure. Countering the prevailing pessimism about prospects of gross domestic product (GDP) growth, Dr Ahluwalia said the growth rate of 6 per cent was achieveable this year as agriculture growth is likely to exceed 3 per cent. “Industrial confidence factor is also improving. Although this is low, it seems to have improved as compared to the recent past,” he said at a meeting organised by Assocham. Conceding that the fiscal deficit targets set by the government may come under pressure in view of tax revenue not matching governmental expenditure, Dr Ahluwalia said there is a need to reduce subsidies and cut expenditures wherever possible. He said export growth was important but lower growth rate would not constrain the GDP growth rate as exports forms a very small part of the total demand and its impact would be less than 1 per cent. Whatever growth rates India achieves during the next two years it would be remarkable in view of a very unusual negative international environment, he added. “At a time when global economic growth is expected to be as low as two or 3 per cent, the Indian GDP growth rate of about 6 per cent would be remarkable”, he said. GDP growth rate might slip by a small margin but it cannot be as low as 5 per cent as projected by the Institute of Economic Growth (IEG), he said. When asked about a cut in expenditure to contain deficit this year, Dr Ahluwalia said the expenditure on infrastructure should not be touched. Earlier speaking on slip in exports, a renowned economist working with credit rating agency, ICRA, Mr Mihir Rakshit said though slowdown in subdued economic climate was natural, the decline in exports to European Union, the only region with better growth prospects was surprising. Galloping inflation and
price rise in agro commodities, Mihir said, were equally
surprising at a time when slowdown was spreading
worldwide and commodity prices were ruling low on
markets. |
Farm intelligence system needed LUDHIANA, Nov 9 — Mr Sukhbir Singh Badal, Union Minister of State for Industries, today stressed the need for setting up an agricultural intelligence system based on information affecting the production, processing and marketing of fruits and vegetables. Inaugurating a training programme on "Modern technology and agronomic practices for intensive growth of fruit orchards" jointly organised by Punjab Agro, Mashav Centre for International Cooperation, officials of the Embassy of Israel and PAU, Mr Badal said Punjab had been growing cereal crops with rice, wheat crop rotation and many problems like depletion of the watertable and deterioration in the quality and yields of these crops have started. Diversification to cash crops like fruits, vegetables and flowers has become inevitable. At present Punjab grows vegetables in 1.10 lakh hectares and fruits in 0.88 lakh hectares with an annual production of 17 lakh MT's of vegetables and around 8 lakh MT's of fruits which can be multiplied many times with the adoption of modern technology available in Israel which has the same climatic conditions as Punjab. A large number of food processing industries are being set up in the State. The government has set up three grading and waxing stations for fruits and two pre-cooling cold storages to preserve the produce for better marketing. The minister stressed the need for more cargo cold storages at airports and more cargo flights. The Punjab Government has set up a new Punjab Agro Export Corporation focussing on the export of fruits and vegetables and was going to create infrastructural facilities for their processing and marketing. About 50 progressive farmers of the State and extension officers of the Punjab Horticulture Department, PAU and the Punjab Agro Industries Corporation will participate in the programme during the next 12 days. Israeli and PAU experts will focus on various fruits like citrus, mango, litchi, guava etc and impart theoretical and practical training to farmers. Mr Jagjit Singh Ghungrana,
Chairman, Punjab Agro, Dr G.S. Kalkat, Vice-Chancellor,
PAU, and Mr A.R. Talwar, MD of Punjab Agro, also spoke. |
IOB first to tackleY2K bug NEW DELHI, Nov 9 (PTI) — Public sector Indian Overseas Bank has become the first bank in the country to devise a mechanism to thwart the Y2K millennium bug that threatens to disrupt the global computer banking system in the turn of the century. ‘‘We have developed inhouse software that will safeguard our organisation from the Y2K problem’’, the Chairman and Managing Director of the bank, Mr K. Subramaniam, told PTI here. On the new ‘any branch banking’ (ABB) inaugurated by him today, he said the bank had connected all branches in Delhi so that customers had a choice to operate from any of its offices in the city. ‘‘We are
planning to hook up all branches in the metropolitan
cities soon’’, he said. |
THE Pakistani Government has decided to sign new contracts with five Independent Power Producers (IPPs) on the eve of the visit of an International Monetary Fund (IMF) team in Islamabad. According to Pakistan’s leading financial daily Business Recorder, the government has decided to sign new contracts with the IPPs to avoid a legal battle in international courts. Quoting unnamed Ministry of Water and Power officials, the paper said the government was all set to sign the pacts tomorrow and the five IPPs were “informed about the development.” The decision to re-enter into the agreements is seen to have come under continuing pressure from the IMF and the World Bank, which were unhappy with Sharif’s cancellation of the deals first signed in 1994. Most of the IPPs are US and European power companies. — IANS Inflation falls Pakistan’s finance ministry officials have spoken of satisfactory performance of the country’s economy in spite of the crushing international sanctions. An official economic review, released by Ashfaq Ahmed, adviser for economic affairs and spokesman of the Ministry of Finance, said inflation has been recorded at 6.7 per cent against 10.9 per cent over the corresponding period of the last year. The low inflation rate, according to the review, is due to the improved supply situation as a result of good performance of agriculture and large-scale manufacturing last year, prudent fiscal management and tight monetary policy followed during the last year as well as in the current year and depressed international prices of Pakistan’s major import items. In the industrial sector, a growth of 2.3 per cent performance was recorded over the corresponding period of the last fiscal. The products which have registered substantial growth include consumer goods, motor tubes, cement, pig iron, tractors, buses, vegetable ghee and petroleum products. — IANS Onion crisis PAKISTAN exported onions worth Rs 385 million last year but onion worth Rs 236 million were also imported into the country during the same period, according to NNI news agency. Much akin to India’s onion crisis this year, Pakistan too faced a measure of trade mismanagement and imported onions after having earned a record amount from exporting them. According to foreign trade statistics, Pakistan earned a record Rs 661.13 million from vegetable exports in 1997-98, nearly half of it from overseas sales of its onion harvest. Onion accounted for Rs 385 million, potatoes for Rs 211 million, dry chilli for Rs 23.50 million, chilli powder for Rs 40.25 million and split gram for Rs 2.0 million of export earning that year. But, in the same year, Rs 340 million worth of vegetables were imported, the bulk of them being onions — worth Rs 236 million. Potatoes worth Rs 26 million, dry chilli worth Rs 76 million, chilli powder worth Rs 2.0 million, and gram dry whole worth Rs 6.50 million were also imported. Pakistan has been in the midst of a massive hike in vegetable prices this year, including such staples as potatoes, onions and lemon. Lemon prices have increased by more than 100 per cent, selling for as much Rs 5 a piece, largely because its scarcity in the wholesale market. — IANS Poor cotton Pakistan incurs an approximate loss of over Rs 2,000 crore annually by exporting poor quality cotton, says Dr Zahoor Ahmad, Director of the Pakistan Cotton Standards Institute (PCSI). Pakistan gets about Rs
4.20 per pound less than the actual rates of the market.
Claiming that Pakistan’s cotton is better than many
other cotton producing countries, he however said that
there was a need for maintaining quality control “we
can earn better profit.” — ANI |
Autoroam launched by Tata Cellular CHANDIGARH, Nov 9 — Tata Cellular today announced the launch of Autoroam to enable its subscribers to be accessed on their cell phones at different cities in India on a single cell number and a single SIM card. Corporate managers and businessmen who travel frequently can now be connected with a single cell number irrespective of their location in India, Mr Ajay Pandey, Vice-President, Marketing and Customer Service, Tata Cellular, said in a statement here today. This frees them from the bother of constantly changing the SIM cards and memorising different numbers everytime they travel. The caller need not know in which city the subscriber is but will still be able to access him. This is possible as the call is automatically transferred to the city in which the subscriber is “roaming”. To begin with, Autoroam
facility will be available in the four metros of Delhi,
Calcutta, Mumbai and Chennai. The number of locations
will soon increase to over 150 cities in the country.
‘Flexroam’ and ‘Easyroam carr also switch
to Autoroam. |
JK assured of grain supply NEW DELHI, Nov 9 (PTI) — The Centre will make necessary arrangement for transporting foodgrains to Jammu and Kashmir on an urgent basis. An assurance to this effect was given to the Food Minister of Jammu and Kashmir by S S Barnala, Union Minister of Food and Consumer Affairs, when the former called on him here recently. Jammu and Kashmir had been allotted 13,557 tonnes of common raw rice and 854 tonnes of grade “A” rice for October, 1998, an official release said here today. The Food Corporation of India had a stock of about 12,650 tonnes of grade ‘A’ rice and 1,400 tonnes of common rice in Kashmir at the end of October. The corporation will be
despatching 20 rakes of common rice (40,000 tonnes) to
Jammu and Kashmir for meeting the state’s
requirement for November and December. |
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NEW DELHI, Nov 9 (IANS) — The government proposes to tap the strength of the 18-million-strong Indian dispora by setting up a forum for non-resident Indians (NRIs) to interface with the Prime Minister and other senior functionaries. A top official of the Federation of Indian Chambers of Commerce and Industry (FICCI), which is co-sponsoring the two-day Indian entrepreneurs conference to be opened by Prime Minister Atal Behari Vajpayee on November 12, said this would be the major outcome of the first global-level summit of Indians living abroad. Over 130 delegates from 23
countries have confirmed their participation in the meet.
FICCI deputy secretary-general Vijay Topa said the
invited delegates were either corporate leaders or
top-level management consultants and chief executive
officers and entrepreneurs.
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Limit raised NEW DELHI, Nov 9 (PTI)
— The government has increased investment limit for
Indian companies abroad from $ 4 million to $ 15 million.
The enhancement in the investment limit through the fast
track route has been provided to facilitate overseas
investment in joint ventures and wholly-owned
subsidiaries, an official release said here today.
However, the special consideration for investment in the
South Asian Association for Regional Cooperation (SAARC)
countries will continue. |
Videocon sells power project stake NEW DELHI, Nov 9 (PTI) — Videocon Power has sold 36 per cent stake in the $ 1.2 billion north Madras power project to British giant, National Power Company, a top company official said. The Indian company would still have largest stakes at 38 per cent in the 1050 mw thermal project in Tamil Nadu, followed by 36 per cent of National Power and 26 per cent of multinational Asea Brown Boveri (ABB). “We are planning to be a major player in the power sector and we do not want to part majority of our funds in a single project. Therefore, we diluted our stakes from 74 per cent to 38 per cent in this project,” Videocon power Director Kuldeep Drabu told PTI. Mr Drabu, however, declined to give details on the financial arrangements of the deal. Videocon had selected National Power, its third joint venture partner, as strategic investor who would be present in all managerial and operational functions, he said. The Dhoots-promoted
company will now have only 38 per cent stake in the
project. |
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| Forex MUMBAI, Nov 9 (PTI) — The following are interbank forex and RBI rates (in rupees per unit): US $ 42.27/29 The RBI reference rate was Rs 42.27. Silver down Canbank TWI India IFFCO B. School LIC income |
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