New Delhi, February 12
With the continuing weakness in the economy, India Inc today sought the intervention of the prime minister to look into the issue of industrial slowdown and monitor its progress for the next few months. Quashing hopes of an economic recovery, industrial output contracted by 0.6% in December, the second consecutive month of decline, mainly due to weak manufacturing and mining sectors. To add to the bad news, consumer price inflation rose for the fourth consecutive month to clock a high 10.79% in January, driven by higher prices of vegetables, edible oil, cereals and protein-based items.

“The IIP data has dimmed hopes of recovery in manufacturing in the near future”, said FICCI president Naina Lal Kidwai. "It’s definitely a cause for serious concern as both consumer goods and investments have witnessed negative growth", she added.

She said in a statement that while new project announcements have tapered off, the existing projects are suffering with cost and time overruns indicating a need for improving and strengthening implementation in order to ensure project completion. "We feel these disappointing figures certainly call for high level committee under the PM to look into the issue of industrial slowdown and monitor its progress for the next few months" Kidwai said.

Reacting to the IIP data, CII urged the government not to raise any tax or duties in the upcoming budget. "The sentiment is already reflected in the IIP figures and CII doesn’t want to see any announcements that would hurt industry’s confidence," it said.

CII said the IIP data was “disappointing to say the least”. “With the exception of October 2012, there is a trend developing, which is most disconcerting. What is extremely worrisome is the negative growth of the manufacturing sector driven by a sharp decline in demand conditions in the economy. This has happened especially at a time when the festive season was expected to boost consumption demand”, CII added.

Assocham president Rajkumar N. Dhoot said the continued fall in intermediate and capital goods production indicates that the revival is a distant dream.

Crisil Research said manufacturing has been hit by weak domestic demand - both consumption as well as investment, and sluggish exports owing to the fragile global economic scenario.

India's industrial production unexpectedly shrank for a second straight month, weighed down by weak investment and consumer demand, casting doubt on Finance Minister P. Chidambaram's view that Asia's third largest economy is showing signs of recovery.

A Reuters poll of 24 economists had expected growth of 1.1%, after output shrank 0.8% in November. Manufacturing output, which accounts for the bulk of industrial production and contributes about 15% to overall GDP, fell 0.7% in December from a year earlier.

New Delhi/Jakarta, February 12
Research in Motion Ltd must chart a tough course in its two key emerging markets of India and Indonesia: quickly launch cheaper handsets to woo lower-end subscribers while restoring its tattered brand among the countries' status-conscious.

The company, which is rebranding itself BlackBerry after its best-known smartphone, has won millions of followers in these two Asian countries, mostly by selling cheaper handsets and offering service packages as low as $2 a month. So it's unlikely that the Z10 model introduced last week, which operators in India expect to sell for around $750, will appeal to the users it must reach if it is to build market share.

"It's clear that not only are India and Indonesia among the largest markets but in terms of future smartphone growth, they're amongst the ones with the most potential," said Melissa Chau, senior research manager at technology research group IDC in Singapore. "But the two devices that have been launched are not well aligned to the needs of these two markets."

While the company does not break down its sales by country, data from IDC shows that Indonesia was BlackBerry's biggest market outside the United States and Britain last year, while India was ninth.

ABI Research said that BlackBerry accounted for nearly half of Indonesia's smartphone shipments in 2012. Compare this with a global share of just 5.3 percent. In India, the world's second-largest mobile phone market, BlackBerry ranks third after Samsung Electronics Co Ltd and Nokia.

In both countries, young people are drawn by low-cost handsets allowing them to communicate for free on the BlackBerry Messaging Service (BBM). Almost all carriers offer services for the device. Indonesia's XL Axiata Tbk PT, for example, saw a 45% jump in BlackBerry subscribers last financial year after offering packages for as little as 20 cents per day.

But this picture is changing rapidly. The rise of messaging services such as WhatsApp that are not confined to any single operating system and the proliferation of cheap Android devices have diluted the BlackBerry's appeal.

Mickey Nayoan, 32, a product designer in Jakarta, swapped his BlackBerry for a Samsung phone six months ago and isn't missing it. At the same time, higher-end users have deserted what is increasingly seen as a low-end brand. "When they came up with the cheaper versions, that took the allure off the brand for many Indonesians who are very status-conscious," said Ong Hock Chuan, a Jakarta-based communications consultant. — Reuters

Bangalore, February 12
Sixteen technology startup companies of UK have this week kicked off the long anticipated Web Mission 2013. Over seven days (February 9 to 16), split between Bangalore and New Delhi, the participants will learn firsthand how to accelerate their business globally as they meet with influential business figures keen to help them turn their Indian dreams into realities.

Supported by the Technology Strategy Board and UK Trade & Investment and organized by The Long Run Venture and the Co-Sponsorship Agency, this mission will showcase the growth opportunities available in India to these selected UK startups. Apparently, these are companies that can offer India transformational products and services, but need to find out more about how their technology can support India’s populace.

David Bott, director of innovation programmes at UK’s Technology Strategy Board, said, “the fast growth-rate of technology industries in India is exceeding that of other markets and it is essential that UK companies work with the Indian business community to establish ties within this thriving industry.

The mission agenda includes visits to Electronic City.