Hong Kong/New Delhi, Dec 7
The Asian Development Bank on Friday cut its economic growth forecasts for the region, which has been dragged back by a continued slowdown in India despite positive data out of powerhouse China. The ADB lowered its 2012 growth forecast for developing Asia, which comprises 45 nations, marginally from 6.1% to 6.0%. It also revised downward the 6.7% growth outlook for fiscal 2013 to 6.6%.

In the ADO released in April, ADB had projected India to grow at 7%. But it lowered its estimate to 6.5% in July and further to 5.6% in the ADO October update citing falling global demand and impact of delayed monsoon on agricultural production.

This is the fourth time that the bank has slashed growth estimates for India.

The ADNB said the adjustment was made following mixed third quarter data in which "positive events" were slightly outweighed by sluggish figures elsewhere.

"Recent downside developments are expected to pare 0.1 percentage points from developing Asia's growth both this year and next," the Manila-based lender said in a statement. Slower-than-expected growth for India, the newly-industrializing economies and the two largest Central Asian economies slightly outweighs the more rapid expansion in some major Southeast Asian economies," the ADB said.

ADB's growth forecast for China this year remained at 7.7%, while India's estimated rate fell from 5.6% to 5.4% for the 2012 fiscal year.

Data last week showed India's economic growth for the July-September quarter eased to 5.3%, extending a slowdown since the start of the year, although analysts said a modest recovery was looming. The once-booming Indian economy has slowed sharply due to high interest rates, Europe's debt crisis and sluggish investment caused by domestic and overseas concerns about policy-making and corruption.

A slew of recent Chinese data meanwhile suggests recovery may be around the corner, with official figures released Saturday showing manufacturing in the world's no. 2 economy grew in November for the second consecutive month. — AFP, PTI

London, December 7
Italian private equity fund Investindustrial has signed a deal to buy 37.5% of Aston Martin Lagonda Ltd from its Kuwaiti owner Investment Dar. Investindustrial is investing 150 million pounds in Aston Martin in the form of a capital increase, said the British car-maker on Friday.

Aston Martin, whose cars became famed for their starring role in James Bond films, said the deal would enable it to "invest more than half a billion pounds in new products and a technology programme over the next five years".

The British company said the deal gave the group an enterprise value of £780 million, compared to a value of £630 million prior to the agreement. It added that no agreement had been made on a technical partnership for Aston Martin with Daimler AG's Mercedes, as some analysts had expected.

Investindustrial said in a statement its stake would come with proportional voting rights and that it expected to receive clearance from competition bodies in the first quarter of 2013.

The Italian group beat Indian tractor maker Mahindra and Mahindra in a two-way battle to invest in the British sportscar maker. M&M had been touted as the frontrunner to buy the stake but Investindustrial emerged as the favourite to seal the deal in recent days. Sources told Reuters on Thursday night Investindustrial was close to sealing a deal.

Aston Martin, perhaps best known for its classic DB5 sportscar, which upstaged Sean Connery in early Bond movies, makes its cars in Gaydon, Warwickshire, the heartland of England's early 20th century motor manufacturing heyday. But the 99-year-old maker of the DB9 and Vanquish sportscars has struggled in recent years. — Reuters

New Delhi, December 7
After the poor response to last month's 2G spectrum sale, a ministerial panel on telecom today decided to lower the base price by 30% for radiowaves in 1800 Mhz band in four circles, which attracted no bidders, for fresh auction this fiscal.

These four circles — Delhi, Mumbai, Karnataka and Rajasthan — were some of the most expensive circles in last month's 2G spectrum auction.

"The Empowered Group of Ministers (EGoM) has decided to reduce the reserve price by 30% in the four circles in 1800 MHz band, where the spectrum remained unsold," a top source said.

The reserve price for last month's sale per block in Delhi was Rs 693.06 crore, while the same for Mumbai, Karnataka and Rajasthan was fixed at Rs 678.45 crore, Rs 330.12 crore and Rs 67.08 crore, respectively.

The EGoM also decided to auction spectrum in 900 megahertz band in Delhi, Mumbai and Kolkata simultaneously with sale of radiowaves in 1800 Mhz.

"The EGoM met today and we have decided to auction the 1800 MHz band in four circles," Telecom Minister Kapil Sibal told reporters here. He added a decision on the pricing has been taken and "we’ll now be moving the cabinet for the approval on the pricing and we have also decided that we’ll complete the auction process within this financial year." He said no decision has been taken on the auction of airwaves in 800 Mhz band. — PTI

Mumbai, December 7
The outgoing head of the Tata business empire, Ratan Tata, warned on Friday that a lack of government support was preventing Indian industry from competing with China and lashed out at a "venal" business environment.

In interviews published ahead of his retirement as chairman this month, Ratan Tata criticized what he called a lack of coherence in government policy and said the Mumbai-based group's ethical standards had cost it business.

Tata, a sprawling conglomerate whose portfolio ranges from salt to software, has earned itself a global reputation for its eye-catching purchases of Western companies such as Jaguar Land Rover and Corus Steel.

Tata told the Financial Times his group planned to look to other emerging markets for expansion and accused Prime Minister Manmohan Singh of forcing it to look abroad by failing to address complaints about bureaucracy.

Singh's government is currently steering a series of economic reforms through parliament which aim to open up sectors such as supermarkets, insurance and aviation.

But Tata, whose global sales total $100.9 billion, said investors were being deterred from India and complained that it still took the best part of a decade to gain clearance for major projects. "Different agencies in the government have almost contradictory interpretations of the law, or interpretations of what should be done," he told the London-based newspaper.

"These are things which by and large would drive investors away in most other countries," he added.

Tata contrasted the Indian government's attitude towards its industrial sector with that of its counterpart China where Tata recently opened a Jaguar Land Rover factory. "There's a great, marked difference (in) government support," he said.

"If we had the same kind of encouragement to industry... I think India could compete definitely with China."

In a separate interview published in a Mumbai-based newspaper, Tata said his successor Cyrus Mistry would face a major struggle not to compromise the group's ethical standards.

"They (Mistry and his fellow executives) will have to make decisions and, when they do this, they will be constantly faced with the question: do you compromise, do you give in?" said Tata, who stands down on December 28 when he turns 75. — AFP

Bangalore, December 7
Infosys' dollar revenue growth outlook of 5 percent for the year ending March 2013 could be under threat, chief executive S.D. Shibulal was attributed as saying by UBS in an investor meet.

Customer deferrals, ramp-downs in a few large projects, delays in large deal closures and longer-than-expected client shutdowns due to Hurricane Sandy, especially in the manufacturing sector, may cause threat to outlook, says a UBS note.

UBS said it was not surprised by potential outlook cut, but feared its own revenue forecast for company at 3.8 pct may be hurt as it had not factored in the impact of Hurricane Sandy.

"Our conversation with Infosys reinforces our concerns on near-term pressures on guidance. This is likely to impact stock price over the near term, but we see limited downside from current levels given the low expectations and cheaper valuations," says the note.

Nomura said the possibility of an organic revenue growth outlook cut in the third quarter of current fiscal year remains high. It prefers companies with current business momentum like HCL Technologies, Cognizant Technology Solutions and Tata Consultancy Services.

UBS, Nomura have both retained "Neutral" rating on the Infosys stock, which fell 0.6%. An Infosys spokeswoman does not have an immediate comment.

The NSE's IT index has fallen 2.73 percent in last two days after a Cognizant Technology Solutions Corp filing with the SEC raised concerns about its 2013 revenue outlook. — Reuters

Chandigarh, December 7
Following its takeover of Swedish luxury car maker Volvo Cars, Chinese automaker Zhejiang Geely Holding is now getting aggressive about its India operations.

In the coming year the carmaker will be launching the Volvo V40 Cross Country hatchback in the first quarter of next year besides bringing in more corporate editions of its sedans to shore up volumes in the Indian market.

The company is also planning to increase Volvo’s footprint across India with the launch of more dealerships and sales outlets in the country. Volvo Cars is hoping to capture 15 per cent of the total luxury car market in the next seven years.

Volvo Auto India MD Tomas Ernberg said: “With the launch of V40 and the already available car models in India, we are targeting a 50% growth in our sales. During this year, we have witnessed an over 140 per cent increase in our sales. As against 325 cars sold in India in 2011, we have sold 815 cars this year,” he said.

Volvo Cars imports and sells luxury sedans S60 and S80 and premium SUVs XC60 and XC90 in India.