Beruflich Dokumente
Kultur Dokumente
India in 2012
Tough times ahead: No room for complacency
By Raghav Narsalay, Mamta Kapur, Ryan Coffey, Aarohi Sen and Smriti Mathur. January 2012
Content
1. Introduction 2. This could be the year that 3. Calendar of events 4. Macro trends for 2012 5. Key themes for the year ahead A weak fiscal situation could pull down growth Managing inflation will help India pursue its inclusive-growth agenda Measured trade liberalization necessary to stabilize Indias long-term growth Revival of investment will hinge on the governments ability to deliver reforms An energy crisis could choke growth 6. Spotlight-Indias growing trade with emerging markets 7. Sector outlook Automotive Banking Chemicals Defense Education Fast-Moving Consumer Goods Healthcare Information Technology Infrastructure Media and Entertainment Oil and Gas Pharmaceuticals Power Real estate Retail Telecommunications 8. References
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3 4 5 6 7 7 8 9 10 11 12 14 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 22 23
Introduction
There is little doubt that the Indian economy will face an uphill battle in 2012. During the second half of 2011, a variety of factors, including monetary tightening, rupee depreciation and continued turmoil in the Eurozone, fuelled anxiety about Indias macroeconomic and industrial outlook for 2012. GDP growth dropped to 6.9 percent in the quarter ending in September 2011, registering the slowest year-on-year increase in the past two years. Policymakers approach of pushing for growth with less focus on the productive dynamic has translated into increased signs of macro stability risks emerging in the form of higher inflation, fiscal deficit and current account deficit. Sustaining high growth is likely to be the overarching concern in 2012, although the risk of inflation will remain, largely because of a weakening rupee. Over the last two years, the Reserve Bank of India (RBI), Indias central bank, has aggressively sought to rein in inflation, raising the benchmark rate 13 times since March 2010. While interest-rate hikes have not curbed inflation, monetary tightening has hit businesses, slowing investments and triggering deferment of corporate capital-expenditure (CapEx) plans. Moreover, higher interest rates are proving especially harmful to growth in sectors like housing, automotive and consumer durables, as consumers become more cautious about making new purchases. The negative impact of a gradual slowdown in these sectors is now spreading to other critical industries such as steel and cement. The Indian governments strong fiscal position, which had enabled it to prime the economy when the global recession struck in 2008, is now wavering. Indias fiscal deficit has risen sharply, forcing the government to borrow at higher-than-ever rates. Moreover, tax revenues are expected to suffer, given the slowdown in the manufacturing and infrastructure industries. Budgets for developmental and income-support programs aimed at helping Indias rural heartlands will likely take a major hit, compelling rural consumers to save more and spend less. The recent depreciation of the Indian rupee will make exports more attractive. However, new orders from struggling advanced economies have been subdued and will likely continue placing downward pressure on domestic industrial production in early 2012. Moreover, slowing FDI and volatility in export revenues will continue to exert pressure on the Indian rupee. Nevertheless, among large economies, Indias potential to bounce back remains undisputed. With a clear demographic advantage, increasing disposable income, an expanding middle class and large pools of untapped demand in rural markets, Indias domestic consumption will likely fuel the nations economic growth for years. Nevertheless, policy support would help to sustain faith in this growth opportunity. Reforms in key sectors such as retail and insurance must be implemented quickly to attract investment. As India drafts its next Five Year Plan in 2012, it will have a unique opportunity to outline an agenda for inclusive growth and effective governance that can help rebuild trust among its citizens. For Indian businesses, 2012 will be the year to explore new strategies for boosting efficiency and stimulating growth. Companies will need to find fresh ways to cut costs, improve productivity and manage risks to internalize the impact of inflation, rising interest rate and rupee volatility. They must also remember the demand side too is showing signs of fatigue. In this report, we present ideas that can help businesses in India and elsewhere prepare for the new realities of Indias changing macroeconomic and business environment. We recognize that the most successful businesses will invest in immediate priorities without losing sight of tomorrow. As always, we offer these ideas as starting points for lively dialogue about new business directions. We invite your comments and we look forward to the ensuing discussions. Please feel free to contact us at: raghav.narsalay@accenture.com and mamta.kapur@accenture.com.
Calendar of events
2012 January
India and China hold boundary talks at the Special Representatives (SR) level India begins its first renewable energy college
February
Elections in five Indian states-Uttar Pradesh, Punjab, Uttarakhand, Manipur and Goa
March
India signs services FTA with ASEAN and New Zealand India announces new national water policy
April
May
Direct tax code comes into affect Creation of a national information utility or public distribution system network (PDSN)
Commissioning of the first IndoRussian nuclear power project, the Kundankulam reactor Ministry of Environment and Forests brings out the E-waste Rules 2011, regarding management and handling of hazardous substances
June
Nokia launches a tablet in India The worlds first Meta University takes off in India
July
August
September
Tata Motors introduces Air Car in India Data.gov platform, a joint venture between the US and Indian government gets completed
Installed capacity of solar power goes up to 700MW in Gujarat Japans leading refractory producer, Krosaki Harima, sets up a refractory mud plant in India Daimler launches its electric vehicle
October
Pakistan gives Most Favoured Nation status to India India to host World Steel Conference
November
Panasonics Jhajjar plant becomes operational Michelin starts tyre production in India
December
Delivery of Indias aircraft carrier INS Vikramaditya from Russia Indias longest tunnel at 11KM, connecting Qazigund with Banihal, gets completed Ratan Tata retires as Chairman of the Tata Group
2013
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FDI outflows
FDI inflows
Industrial production
18.0 16.0 14.0 12.0 Percentage
(% change year-on-year)
Current account
0.0 -20.0 -40.0
0.0 -1.0
US$ billion
10.0 8.0 6.0 4.0 2.0 0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
-2.0 -3.0 -4.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Macroeconomic indicators Real GDP growth rate Industry growth rate Services growth rate Domestic savings rate Exports (US$ billion) Imports (US$ billion) Inflation rate (wholesale price index-%)
Target for FY2011-12 8.2% 7.1% 10% 34% 330 484 6.5% for FY2011-12
Likely
Probable
Unlikely
Note: Target figures from the Review of the Economy 20011/12 published by the Economic Advisory Council to the Prime Minister of India
Percentage (year-on-year)
Business implications:
Diversify sources for raising capital, as liquidity in domestic market is expected to remain tight due to high government borrowings Re-evaluate and rationalize supply chain network to sync with the new GST regime Identify business opportunities in governments efforts to better subsidy spend and reduce overall expenditure level (for example, technology for payment transfers)
Business implications:
Work with suppliers to expand capacity and plug inflationary pressure points along the supply chain Invest in disruptive innovations to develop sustainable and cost-effective solutions for Indias population at the bottomof-the-pyramid Identify areas across the supply chains to profitably engage rural consumers as suppliers, intermediaries and customers
Business implications:
Develop a diversified geographic portfolio that mitigates economic risks Utilize free trade agreements to reduce supply chain costs and access new markets Invest in enhancing efficiency of capital, labour and technology to successfully compete against cheap imports Leverage knowledge of domestic markets to erode the price competitiveness of competitors
Business implications:
Participate in the creation of physical and social infrastructure through innovative public private partnerships Collaborate with other stakeholders to empower contractual and permanently employed labour with technical and business skills Support sustained participation of local populations and experts towards developing long term income generating programs for local populations Work closely with the policymakers to position India on a path of sustainable economic growth in terms of technology transfer, sharing knowledge and skills and growing new markets
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Over the last two decades, growth in domestic energy production has failed to keep pace with Indias exploding energy needs. As a result of inadequate mining and refinery capacity, India has yet to unleash the full potential of its domestic coal endowmentthe third largest in the worldand its estimated that insufficient coal production continued to contribute to a third of the countrys total power deficit over the last fiscal year4. But Indias energy challenges are not limited to production shortfalls. Poor distribution infrastructure also constrains supplyside growth. Not only does India lack the infrastructural capacity to deliver more energy to meet rising demand, inefficiencies in existing distribution infrastructure has resulted in an average of 30 percent energy loss during transmission and distribution one of the highest rates in the world5. The demand-side picture is not much better, with Indias industrial sectorone of the worlds most energy-intensivecontinuing to push domestic energy consumption upward (industrial output contributes to 16 percent of Indias GDP while consuming 45 percent of commercial energy). The result is a rapidly yawning gap between domestic energy supply and demand that is being filled by increasing energy imports (the annual value of oil imports alone is expected to rise nearly 18 percent in 2012)6.
In 2012, weakness in the rupee (the rupee depreciated almost 20 percent against the US dollar in the last five months of 2011) will magnify the negative impact of foreign energy dependence on business risk and profits in India7. Though depressed global consumption may lead to a slight moderation of global energy prices, the rupees weakness is likely to result in a price hike on energy imports and a higher debt service burden in rupee terms that would squeeze domestic profit margins in 20128. Curbing energy prices and Indias dependence on energy imports requires policy support and reform to address the countrys supply-side energy shortcomings. To this end, the government needs to accelerate the overhaul in the countrys energy distribution infrastructure with investment in technologies such as the smart grids while supporting the expansion of new alternative energy sources. The National Solar Mission (which aims to generate 20,000 MW of solar power by 2020) and the National Mission on Enhanced Energy Efficiency (which has targeted to deliver annual fuel savings of about 23 million tons oil equivalent) offer hope if implementation and funding improve in 2012.
Business implications:
Invest in energy saving technologies and processes and develop alternative sources of energy supply Diversify sources of supply by forging strategic alliances and key partnerships with suppliers and to secure resource supply in the long term Utilize free trade agreements as a platform to cost-effectively source clean and smarter energy technologies Shape pro-growth approaches to regulation by working closely with policymakers
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Spotlight
Indias growing trade with emerging markets
Over the last decade, Indias deepening integration into the global economy has coincided with a strengthening of trade ties with other emerging markets. The proportion of Indias exports to emerging economies increased by almost 20 percent, from 46 percent in 2000 to 65 percent in 2010, with four of Indias top export destinations in emerging markets. Imports from emerging markets have grown albeit at a slower pace, increasing from 51 percent in December 2000 to 59 percent in December 20109. Trade growth between India and emerging markets is only likely to accelerate in 2012. Through initiatives like Indias Look East Policy, the Indian government continues to put in place the structural support to strengthen trade ties with Asian, African and South American countries. The countrys trade with Chinawhich grew at a compound annual growth rate of 37 percent between 2000 and 2010is only likely to speed up in 2012 on the back of a recent US$16 billion bilateral investment and trade deal10.
Imports
Exports
Figure 2: Growth in trade with select emerging markets Country China Indonesia South Korea Iran Nigeria South Africa Malaysia Brazil
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Export value CAGR (2000/01-2010/11) 37.07 31.57 24.77 28.23 19.31 29.07 20.59 33.16
In July 2011, the Indian government continued to open up new inroads into Africa for Indian business by announcing over 250 training positions for African students and researchers in sectors where Indian firms have market leading expertise including rural electrification, small hydropower, and wind energy11. Emerging markets in South America are also interested in deepening ties with India. Recently ambassadors from four countries-Uruguay, Paraguay, Mexico and Peruexpressed interest in tapping Indian expertise in areas including information technology, oil and agriculture through new bilateral trade pacts12. The success of Indian companies in 2012 will depend more than ever on their ability to tap into these new opportunities in emerging markets, especially as they look to counter depressed demand at home and increased risk in developed markets. Because of their innovative lowcost business models and ability to operate on razor-thin margins, Indian companies are well-placed to take advantage of Indias growing ties with emerging market. For instance, Bharti Airtels, an Indian telecoms provider, success in Africaincluding its successful 2010 acquisition of Zains African operationshas elevated it to the worlds fifth largest mobile operator by subscribers13. Manufacturers also stand to benefit. Tata chemicals recently launched
efforts to explore marketing the Tata Swach, an innovative low-cost water purifier developed for Indias rural consumers, across Asia, Africa and South America. While there are downsides to growing emerging market tradefor instance, domestic competition in low-cost finished good imports or Indias ballooning US$20 billion trade deficit with China14the business and economic benefits of strengthening emerging market trade remains immense. A recent analysis by Accenture and Oxford Economics reveals that growing trade with emerging markets has the potential to boost Indias GDP by US$155.8 billion by 2020. Though concerns have also been expressed that opening up trade threatens domestic jobs in India, the econometric research found that trade with emerging markets will likely have a positive impact on job creation in India, with the potential to create 28.2 million jobs in India by 202015.
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Sector outlook
Automotive
Competition intensifies in the small- and medium-sized car International segment carmakers set up shop
Competition continues to heat up in Indias small-and medium-sized automotives segment. Premium foreign-car manufacturers such as Toyota and Honda, are still playing catch-up to more established players like Maruti and Hyundai, but are gradually gaining a foothold in Indias market. Toyota and Honda plan to continue launching new models in 2012 and are proving adept at striking the right balance between price and performance demanded by Indias consumers. The newest automotive players, like Chevrolet, Nissan and Renault, also intend to ramp up new model launches in 2012. excise and customs duty benefits proposed for hybrid, electric, fuel-cell and hydrogen-cell technology-based vehicles2012 may see this segment finally gain momentum. equity investment, on the assumption that it would erode their control and thus threaten jobs and benefits. Indias largest bank, the State Bank of India (SBI), may face a financial crisis in the fiscal year 2012-2013 if the central government fails to invest in the companys proposed rights issue. The banks tier-one capital is the lowest among its counterparts.
An increasing number of new entrants are planning to set up manufacturing capabilities in India and are scouting potential land acquisitions across the country. Reports suggest that Renault is planning another factory after its successful launch of its joint production facility alliance with Nissan in Chennai. Renault may invest another US$2 billion in building a factory to produce at least 400,000 small cars every year. French car manufacturer PSA Peugeot Citroen has opted for the state of Tamil Nadu for its US$785 million manufacturing facility. The plant will have a capacity of 300,000 units a year and will cater to domestic and international demand.
Banking
Crisis lurks for publicsector banks
Challenges to loan growth, liquidity and asset quality will intensify in the medium term for Indias banking sector. Given their loan profile, margin track record and inferior asset quality, public-sector banks are more vulnerable to these challenges than private banks. Moreover, the government has not kept its promise to provide fresh equity support to public-sector banks, and the lack of support is further hindering their operations. On the other hand, these banks oppose the inflow of private
Chemicals
Fertilizer input costs rise with new potash deal
After a three-month standoff, Indian fertilizer companies have agreed to buy potash at an average price of US$470 a ton. Tata Chemicals, Coromandel International, Zuari Industries and Indian Farmers Fertiliser Cooperative signed import deals with Canpotex, the North American potash cartel, for 670,000 tons of potash for the period October 2011 through March 2012. India is the largest importer of potash, followed by China and Brazil, with imports touching a record 6.4 million tons in 2010. But while China has its own mines and has invested in overseas mines, India is significantly exposed to global price volatility when it comes to potash supply, because it has no domestic reserves.
to have grown from about 729,000 units in FY09 to about 1,607,000 units in FY11. On the other hand, import duties on feedstock and fuels such as naptha will continue to encourage imports.
Organisation will help facilitate research and technology development capabilities through joint projects, collaborative research and industry and academia participation.
Defense
Defense expenditure witnesses massive growth
Having spent close to US$80 billion over the last decade on defense, the Indian government has decided to significantly ramp up expenditures over the next five years to an expected US$100 billion. Most of this will likely be spent on modernization programs and procurement of artillery howitzers, combat aircrafts, armored vehicles and upgrades to existing inventory. India will also award the 126 multi-role fighter jet contract in 2012 after initial screening in 2011, which left only two players in the fray.
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Education
Final decision may come on foreign investment
The Foreign Education Providers bill, intended to allow 100 percent foreign direct investment (FDI) in the education sector, went through many rounds of discussion in 2011 and may see the light of day in 2012. The Human Resource Development Ministry has already gone one step further to encourage FDI by rejecting the standing committees suggestion that foreign institutions should come to India by invitation only. Instead, the ministry believes that its regulations can ensure the quality of institutions that invest in India. To be sure, some foreign institutions are still waiting for greater clarity on regulations. However, others like Educomp Solutions have already formed joint ventures to test the market.
out of 1,000 teaching hours each year, 200 hours will be devoted to vocational courses. There will also be seven levels of certification that will end at the university level.
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Healthcare
Private players speed up expansion plans
The Indian healthcare sector could generate more than 40 million new jobs and US$200 billion in increased revenues by 2020, according to the report Indias New Opportunities- 2020. Realizing the magnitude of this opportunity, private healthcare players, domestic and international, are revving up their investment plans. For example, Fortis Healthcare recently announced the launch of two more hospitals, one in Hyderabad and the other in Agra, taking its hospital network count to 68. Fortis also acquired its sister firm, Singaporebased arm Fortis Healthcare International for US$665 million as part of its plan to consolidate domestic and international operations. In addition, it recently acquired a 65 percent stake in Hoan My Medical Corporation. One of Vietnams largest private healthcare provider groups, Hoan My has more than 1,100 beds across six hospitals.
Information Technology
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Infrastructure
Infrastructure projects face delays
Delays in government and regulatory decision-making have caused several road, railway, port and other infrastructure projects to fall behind schedule. According to Standard & Poors report, India needs to reform policies concerning project execution and long-term funding to overcome its infrastructure challenge, which could prevent it from achieving its target of 9-9.5 percent annual growth during 2012-2017. The slow pace of reforms and a lack of long-term funding could hurt profitability and delay several projects in 201222.
construction-equipment market through subsidiaries or joint ventures. Several global players from countries such as Japan, Britain, Sweden and United States already have a presence in India. But the markets growth potential is now attracting interest from companies in other countries, most notably China, Finland, Germany, Italy, South Korea, Spain and Turkey24.
Global companies set the stage for entering Indias constructionequipment market
Indias government anticipates a US$1 trillion investment in the countrys infrastructure sector during the 12th Plan period. In response, several global firms are keen to enter the emerging Indian earthmoving-and 18
largest crude supplier, India is also looking at Saudi Arabia for alternate supplies36.
of the United States signal foreign pharmaceutical firms growing appetite for Indian pharma.
Deregulation may be in Stricter quality controls the offing come into play
The Indian government may deregulate diesel and liquefied petroleum gas (LPG) pricing in 2012. The government proposes offering subsidized cooking gas only to the poor. It also plans to discuss with oil companies, industry associations and other stakeholders the notion of urging the rich to voluntarily give up subsidized LPG cylinders. The earlier proposal limiting the number of subsidized cylinders to four per year was shelved by the government, which now wants to follow the PDS shops model. Through this model, people who could afford to do so stopped buying food from PDS shops even though they had ration cards37. Under the current proposal, the ministers, members of Parliament, bureaucrats and senior managers at public-sector companies would be among the first people asked to give up subsidized LPG voluntarily38. The Indian pharmaceutical industry will soon have to adopt bar-coding systems to track and trace drugs origins to align with global measures against counterfeit drugs. Bar coding on primary packaging (bottles, vials or strips) for exports will begin in July 2012. Bar coding for secondary packaging (such as packets) will be made mandatory starting in January 2012. Swift adoption of this new system will be critical to the Indian pharmaceutical industrys export competitiveness, as countries including Malaysia, China and Turkey have already complied with these norms. The Planning Commission has also recommended strengthening the infrastructure and manpower of the national drug regulator, Central Drug Standard Control Organization. It has urged the government to pump US$1.2 billion into tightening the drug regulatory system at both the central and state levels during the 12th Five Year Plan period. Other suggestions made by the Planning Commission include setting up an independent authority for regulation and control of all medical devices.
Pharmaceuticals
FDI inflows swell Soaring demand With the Indian government underscores the need for alternative supplies removing caps on greenfield and the brownfield foreign investment in
Indias fuel demand could rise 3.8 percent in 2012, led by diesel and petrol, according to the International Energy Agencys forecast. Demand for diesel is expected to increase to 1.44 million B/D in 2012, increasing by 5.5 percent over 2011, while demand for petrol could increase by 6.7 percent (388,000 B/D) in 201235. In addition, crude shipments from Saudi Arabia to Indian refiners will likely increase in 2012 with the addition of plants in India. After a lingering payment dispute with Iran, Indias secondpharmaceuticals sector, multinational players likely will ramp up their efforts to acquire domestic pharmaceutical firms in 2012. Although the Reserve Bank of India recently removed the automatic approval system in brownfield investments, this may not significantly affect international players expansion plans. Recent acquisitions such as the Ranbaxy Laboratories buyout by Daiichi Sankyo of Japan, Shanta Biotech by Sanofi Aventis of France and Piramal Health Care by Abbott Laboratories
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Administration (FDA) to sell a generic version of Lipitor in the US market. Drugs with combined annual sales of US$150 billion could go off-patent by 2015, intensifying competition in the generics market and fueling a drop in prices. India has the highest number of FDA-approved pharmaceutical manufacturing facilities outside the United States. Thus, Indian pharmaceutical manufacturers could see a significant boost to their bottom lines.
Power
A coal shortage threatens the power sector
Indian power companies could be compelled to cut their production because of a shortage of coal stocks in the country. The shortage will likely exceed 200 million tons during the 12th Five Year Plan period if urgent measures are not taken to bridge the gap, according to the Ministry of Coal39. With domestic coal production struggling to keep pace with the capacity addition in the power sector, more than 40,000 MW of new generation capacity could get stranded in the coming years for want of fuel. This constitutes almost 70 percent of the power capacity slated to come between 2012 and 2017 and could delay new power projects being established across the country40.
Real Estate
The forecast for sector growth is grim
Indias residential and commercial real estate market will remain cautious in early 2012 because of prevailing uncertainty in the global market and the likelihood of further interest-rate hikes by RBI, according to real estate consultants Jones Lang LaSalle in their report, India Real Estate Forecast 2012 Across Asset Classes. While the absorption rate in the residential sector will likely be low with a decline in new launches, demand for commercial real estate is expected to remain stable in 201248.
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Retail
Rural India promises growth in the sector
Indias retail sector counts among the largest in the world and is a major employer domestically. Industry experts believe that Indian retail will be worth US$521 billion by 201253. One force driving this increase is sales growth in Indias rural areas. Rural consumers are augmenting basics with purchases of more contemporary products such as diapers, colognes and chocolates54. This trend presents an opportunity for retailers to experiment with different products in the rural market and could stimulate growth in the sector throughout India.
entered India earlier, owing to policy restrictions on their ownership and control of their brands57. However, with the new policy regime, the retail sector will expand and Indian consumers will have more brands to choose from.
Reliance Industries will enter the fast-food business with its own brand in 2012. The company plans to take on established international fast-food brands such as McDonalds and Dominos as well as local chains including Jumbo King and Saravana Bhavan. Reliance intends to launch its first stores in Delhi, Mumbai and Bangalore in the form of independent outlets as well as in food courts58. Moreover, Godrej Group has decided to double the number of stores in its retail venture, Godrej Natures Basket. The Indian government postponed its India has 16 Natures Basket stores so decision to open up the retail sector far. With average individual spending to FDI in 2011. In 2012, industry bodies and companies are expected to on gourmet food more than doubling over the past three years in India, continue pushing the government to allow higher FDI in the sector. Industry Godrej aims to scale up its operations with increased product offerings at firmly believes that reforms to FDI 59 regulations in the retail sector are vital its stores . for driving growth in the sector and the Indian economy overall55. Even farmer associations have been pressuring the government to open the retail sector, on the assumption that doing so could bring farms greater market access56. India has not opened its retail industry to foreign investors. However, it will likely remain a preferred destination for global retailers eyeing emerging markets to offset worsening economic The proposal to allow 100 percent conditions in the developed world. foreign ownership of multi-brand For example, Swiss retail chain Dufry retail in India has been put on hold. International and InterGlobe Retail, Nevertheless, the Indian government a sister concern of IndiGo Airlines, will allow 100 percent FDI in singlehave partnered with the Delhi Metro brand retail. This will pave the way for Rail Corporation (DMRC) to set up foreign brands such as Prada, Ikea and globally renowned Hudson News GAP (among many others) to enter Cafes across 57 metro stations. India because they sell a single brand Hudson News currently operates more under one roof. These brands had not than 500 shops in 10 countries across the globe, and the tie-up with DMRC would be its first foray in India60.
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In addition, US-based retail giant Wal-Mart is setting up a research and software development center in Bangalore to develop technologies and solutions for its global e-commerce business. Wal-Mart has launched this venture through its global e-commerce division, WalmartLabs, which develops technologies in social and mobile commerce for global shoppers61.
semi-urban sectors, mobile operators are considering raising call tariffs. Stagnation in the urban segment is also pushing operators to move to rural areas, which has increased their operational costs and put further pressure on margins66. The high price that mobile operators had to pay for 3G licenses has further pressured margins, increasing the likelihood that operators will raise tariffs.
With the leading mobile-service providers becoming comfortable with offering 3G services, the sector is expected to grow, particularly in terms of subscribers64. 3G services in India could reach 50 million subscribers by 2012. In addition, the telecom ministry has stated that India has capacity in the spectrum to move to fourth generation (4G) services. Thus, advanced services could be launched in the country in 201265.
References
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Coal shortage may trip 42,000 MW of new projects, The Hindu Business Line, May 4, 2011. 41. Power discoms suffer Rs 70,000 cr loss, want price hike, The Financial Express, October 12, 2011. 42. Coal shortage to upset targets: Power Ministry, Indian Express, November 8, 2011. 43. India targets 2 GW solar capacity by 2013, domain-b, November 11, 2011. 44. L&T mulling foray into wind-based power, The Economic Times, November 28, 2011. 45. Asian Development Bank grants $48 mn loan to Reliance Powers solar project in Rajasthan, The Economic Times, December 5, 2011. 46. Madhucon projects to build thermal power plant at Indonesia, The Economic Times, December 13, 2011. 47. NTPC to offer maintenance services in Bangladesh, The Economic Times, December 13, 2011. 48. Residential, commercial real estate market sentiments will remain cautious in 2012: JLL forecast, The Economic Times, December 1, 2011. 49. 200 more green buildings by 2012, Business Standard, December 29, 2010. 50. Draft bill framed to regulate real estate sector, domain-b, November 11, 2011. 51 Tata Group to launch Rs 32,000 houses for rural market, The Economic Times, July 15, 2011. 52. Mahindras to foray into affordable housing, domain-b, October 3, 2011. 53. Indian retail sector to touch $521 bn by 2012, Business Standard, July 23, 2009. 54. Rural consumers now buying diapers, salty snacks, colognes and even contraceptives, The Economic Times, December 2, 2011. 55. Recall of retail FDI regressive, disappointing: India Inc, The Economic Times, December 8, 2011. 56. Farmer groups to meet Manmohan Singh to press for FDI in retail, The Economic Times, December 12, 2011. 57. 100% FDI nod for single brands, Hindustan Times, December 7, 2011. 58. Reliance Industries to enter fast-food business with its own brand next year, The Economic Times, December 12, 2011. 59. Godrej Group retail chain Natures Basket plans big expansion, domain-b, October 8, 2011. 60. InterGlobe Retail-DMRC to set up newscafes at metro stations, domain-b, November 11, 2011. 61. Wal-Mart to set up e-commerce R&D centre in Bangalore, domain-b, November 10, 2011. 62. Mobile handset sales to reach 231 million in 2012: Gartner, domain-b, November 22, 2011. 63. India data centre co-location, hosting market to reach $609.1 mn in 2012: Gartner, domain-b, November 26, 2011. 64. 3G in India projected to reach 50 million subscribers by 2012, Telecom Engine, June 23, 2011. 65. Sibal expects 4G services launch by 2012, The Times of India, November 5, 2011. 66. Bharti Airtel chairman Sunil Mittal hints at higher tariffs, Reliance Communications chief Anil Ambani calls for regulatory consistency, The Economic Times, September 7, 2011. 67. Telecom sector - On the cusp of consolidation, The Hindu Business Line, November 15, 2011. 68. Highlights of draft National Telecoms Policy 2011, The Economic Times, October 10, 2011. 69. BSNL plans to lease infrastructure to private players: Govt, The Economic Times, December 2, 2011. 70. Sibal expects 4G launch in 2012, domain-b, November 5, 2011. 71. Viom Networks looks beyond India for profitability, The Economic Times, December 5, 2011. 72. IMImobile to expand its Africa operations, The Economic Times, November 25, 2011. 73. Bharti Airtel says in partnership with Samsung in Africa, The Economic Times, December 8, 2011.
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