Rediff.com Business India's 2010-11 GDP at 8.5%; Q4 growth slips to 7.

8%

India's 2010-11 GDP at 8.5%; Q4 growth slips to 7.8%

India Inflation Rate Table
Below is a chart that represents the different inflation rates recorded from the year 2008 to 2011:

Year 2008 2009 2010 2011

Jan 5.51 10.45 16.22 9.30

Feb 5.47 9.63 14.86 8.82

Mar 7.87 8.03 14.86

Apr 7.81 8.70 13.33

May 7.75 8.63 13.91

June 7.69 9.29 13.73

July 8.33 11.89 11.25

Aug 9.02 11.72 9.88

Sept 9.77 11.64 9.82

Oct 10.45 11.49 9.70

Nov 10.45 13.51 8.33

Dec 9.70 14.97 9.47

India Inflation Rate Chart (in %)

Year Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

2011

9.35

9.54

9.68

9.70

9.56

9.44

9.22

9.78

9.72

9.73

9.34

2010

16.22

14.86

14.86

13.33

13.91

13.73

11.25

9.88

9.82

9.70

8.33

9.47

2009

10.45

9.63

8.03

8.70

8.63

9.29

11.89

11.72

11.64

11.49

13.51

14.97

2008

5.51

5.47

7.87

7.81

7.75

7.69

8.33

9.02

9.77

10.45

10.45

9.70

Indian Economic Outlook 2011-12GDP growth at 8.2%!

GDP Growth Actual & Projected

Government of India today released its much awaited Economic Outlook for 2011-12 that pegs the Indias GDP growth rate for 2011-12 at 8.2% as compared to 8.5% registered last year. Given the current adverse global circumstances and high Inflation to boot, expected growth rate of 8.2% looks quite good!

Important highlights of Economic Outlook 2011-12

Agriculture grew at 6.6% in 2010-11. This years monsoon is projected to be in the range of 90 to 96 per cent, based on which Agriculture sector is pegged to grow at 3.0% in 2011-12! Industry grew at 7.9% in 2010-11. Projected to grow at 7.1% in 2011-12 Services grew at 9.4% in 2009-10. Projected to grow at 10.0% in 2011-12 Investment rate projected at 36.4% in 2010-11 and 36.7% in 2011-12 Domestic savings rate as ratio of GDP projected at 33.8% in 2010-11 & 34.0% in 2011-12 Current Account deficit is $44.3 billion (2.6% of GDP) in 2010-11 and projected at $54.0 billion (2.7% of GDP) in 2011-12 Merchandise trade deficit is $ 130.5 billion or 7.59% of the GDP in 2010-11 and projected at $154.0 billion or 7.7% of GDP in 2011-12 Invisibles trade surplus is $ 86.2 billion or 5.0% of the GDP in 2010-11 and projected at $100.0 billion or 5.0% in 2011-12 Capital flows at $61.9 billion in 2010-11 and projected at $72.0 billion in 2011-12 FDI inflows projected at $35 billion in 2011/12 against the level of $23.4 billion in 2010-11 FII inflows projected to be $14 billion which is less than half that of the last year i.e $30.3 billion Accretion to reserves was $15.2 billion in 2010-11. Projected at $18.0 billion in 2011-12 Inflation rate would continue to be at 9 per cent in the month of July-October 2011. There will be some relief starting from November and will decline to 6.5% in March 2012.

Top Pharmaceutical Companies in India Pharmaceutical Companies in India are developing at a faster pace and this industry holds the pride of being the second largest growing industry in India and this sector is offering a lions share toward the economic development of the country. It has been predicted that by the year 2015, the Indian Pharmaceutical Sector would be the third largest industry all over the globe with an output of 20 billion US dollars. Above all, Government of India has also many schemes for the development of pharmaceutical industry like tax breaks, proper clinical procedures and new procedures for manufacturing of drugs. The names of leaders in Pharmaceutical sector in India are given below:

Top 10 Pharmaceutical Companies in India: Ranbaxy Dr. Reddys Laboratories Cipla Sun Pharma Industries Lupin Labs Aurobindo Pharma GlaxoSmithKline Pharma Cadila Healthcare Aventis Pharma IPCA Laboratories A short description about these companies is given below:

Read more here: http://entrance-exam.net/top-pharmaceutical-companiesin-india/#ixzz1l7ksxfP8 Banking Last Updated: January 2012

Indian Banking Sector: Brief Introduction The Rs 64 trillion (US$ 1.22 trillion) Indian banking industry has made exceptional progress in last few years, even during the times when the rest of the world was struggling with financial meltdown. Even today, financial institutions across the world are facing the repercussions of the turmoil but the Indian ones are standing stiff under the regulator's watchful eye and hence, have emerged stronger. Ratings agency Moody's believe that strong deposit base of Indian lenders and Government's persistent support to public sector and private banks would act as positive factors for the entire system amidst the negative global scenario. The sector has undergone significant developments and investments in the recent past. Some of them are discussed hereafter along with the key statistics and Government initiatives pertaining to the same. Indian Banking Sector: Key Statistics

According to the Reserve Bank of India (RBI)'s Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks', March 2011, Nationalised Banks, as a group, accounted for 53.0 per cent of the aggregate deposits, while State Bank of India (SBI) and its associates accounted for 21.6 per cent. The share of New private sector banks, Old private sector banks, Foreign banks and Regional Rural banks in aggregate deposits was 13.4 per cent, 4.6 per cent, 4.4 per cent and 3 per cent respectively. With respect to gross bank credit also, nationalised banks hold the highest share of 52.8 per cent in the total bank credit, with SBI and its associates at 22.1 per cent and New Private sector banks at 13.2 per cent. Foreign banks, Old private sector banks and Regional Rural banks held relatively lower shares in the total bank credit with 4.9 per cent, 4.6 per cent and 2.4 per cent respectively.

Another statement from RBI has revealed that bank advances grew 17.08 per cent annually as on December 16 while bank deposits rose 18.03 per cent. RBI data shows that India raised US$ 1.6 billion through external commercial borrowings (ECBs) in November 2011 for new projects, capital outlay et al. 78 companies raised US$ 1.3 billion under automatic route and US$ 253 million was raised under the approval route (it requires case-by-case approval by the regulator).

India's foreign exchange reserves stood at US$ 297 billion as on December 30, 2011. In recent years, deposits under non-resident Indians (NRI) schemes have witnessed an upsurge. There was an inflow Rs 14,763 crore (US$ 2.83 billion) under NRI deposits in 2010-11, which was 6.5 per cent higher from 2009-10. In 2011, the total of NRI deposits was Rs 2,30,812 crore (US$ 44.2 billion),

compared to Rs 2,27,078 crore (US$ 43.5 billion) in 2010. Indian Banking Sector: Recent Developments

The US Export-Import Bank, with a commitment of US$ 7 billion, is on a way to diversify its portfolio in India by financing projects in education, healthcare and agriculture. After Mexico, India is the second biggest investment destination for the bank as the entity anticipates the country to become the largest market in next 12-18 months. India Infrastructure Finance Company Ltd (IIFCL) and IDBI Bank have inked a five-year memorandum of understanding (MoU) to launch infrastructure debt fund (IDF) schemes. The IDF, for which IDBI Bank and IIFCL would play strategic investors, is expected to get launched by the end of February 2012. With 'green power' projects getting highly popular in India, especially in the states of Gujarat and Rajasthan, banks are increasingly opening up to projects from non-conventional (solar and wind) energy space. After receiving project proposals that were meant for a particular industry/consumer or group of industries/consumers for their own use, banks are now getting projects that entail commercial viability (25-100 mega watt). With an intension to strengthen its hold in Southern India, the Uco Bank is planning to add 11 more branches in Andhra Pradesh to its 66-branch-strong network in the state. The bank has made exemplary progress in recent past with 2,004 branches in the country and four abroad.

Government Initiatives Agreeing to Khandelwal Committee's recommendation, the Government has said that state-run banks will get two Chief Executives and the large banks would get three Executive Directors (EDs) in their management panel. Banks with a business of more than Rs 300,000 crore (US$ 57.44 billion) are considered to be large entities. The third ED, however, would be responsible for human resource development (HRD) and technology in the bank. "Non-resident Indians (NRIs) are crucial investors for banks as they form 10 per cent of total personal segment deposits," said Samir Kumar Bhattacharya, General anager (NRI), State Bank of India (SBI). In order to encourage them, the RBI had deregulated interest rates on Non-Resident (External) Rupee Deposits and Ordinary Non-Resident Accounts (on December 16, 2011) due to which banks are able to offer competitive rates to NRIs. This move has further made India an attractive investment destination for them. Further, the Government of India has decided to infuse Rs 6,000 crore (US$ 1.15 billion) in public sector banks during the remaining 2011-12 to ensure that the entities meet regulatory requirements. In 2010-11, the Government had provided Rs 20,157 crore (US$ 3.86 billion) as its capital support to public sector banks.

In order to prepare public sector banks for neck-to-neck competition ahead and improve their performance in future, the Ministry of Finance has set new benchmarks for them to achieve. The new benchmarks, that would calculate their functional and financial capability to qualify for capital infusion, entail three performance indicators - savings and current deposit ratio, employee-branch ratio and profit per employee. Road Ahead According to Chanda Kochhar, Managing Director and Chief Executive Officer, ICICI Bank India's banking sector has the potential to become a Rs 200 trillion (US$ 3.83 trillion) industry by 2020 if the country's economy grows at 8 per cent per annum over a long term as the growth of any country's banking sector depends on the growth of that country's gross domestic product (GDP). Another report by The Boston Consulting Group (BCG) India, in association with a leading industry organisation and Indian Banks Associations (IBA) predicts that Indian banking sector would become the world's third largest in asset size by 2025. The report also analyses that mobile banking would become the second largest channel of banking after ATMs. Given the positive eco-system of the industry, regulatory and Government initiatives, mobile banking is anticipated to enhance from 0.1 per cent of transactions in a 45 per cent financial inclusion base in 2010 to 34 per cent of the transactions with 80 per cent rural inclusion base by 2020, as per the report. Exchange Rate Used: INR 1 = US$ 0.0191 as on January 10, 2011 References: Press Releases, Media Reports, RBI Documents, ICRA Repo Top Telecom Companies in India India is one of the fastest growing mobile phone markets in the world and due to this, many foreign companies are thronging India to make their presence in the growing telecom sector in India. According to Telecom Regulatory Authority of India, the number of telephone subscriber base has touched 671 million during the month of June 2010 as compared to the figure of 653 million during the month of May 2010. The list of top players in India in Telecom sector is given below: Top 10 Telecom Companies in India: Bharti Airtel BSNL Vodafone Essar

 Reliance Idea Cellular Tata Communications Tata Teleservices Aircel MTNL TTML If you are interested in knowing more about these top players read on the content given below: Bharti Airtel: Bharti Airtel is holding the lead position in the top ten telecommunication companies in India by recording a five per cent growth in the year 20092010. The company is dealing with four major categories namely digital television, enterprise, telemedia and mobile. The company has its operations in more than 18 countries. The company has recently arranged for a consortium of telecom operators all over the globe for announcing its launch of the Eassy cable system, which is an undersea cable connecting system connecting Africa to Europe. BSNL: BSNL or Bharat Sanchar Nigam Limited in the oldest player in the telecom sector in India and they hold the pride of being the first to connect even remote villages through their telephone service. They offer both fixed line and mobile services and the company has more than 71.68 million subscribers all over India. Vodafone Essar: Vodafone Essar began its operations in the year 1994 and the company has operations all over India with more than 106.34 million customers. The company holds a place in the top ten telecommunication companies in India since the recent revenue of the company is Rs. 232 billion, which has recorded a growth rate of 13.7 per cent as compared to the previous revenue figures.

Reliance: Reliance is one of the largest private sector company in the information and telecommunication sector India with a subscriber base of more than 100 millions. This company is also called as RCom and the company has established a convergent digital network and integrated wireline and wireless connection. Idea Cellular: Idea Cellular is a part of Aditya Birla Group and they are the leading GSM Mobile service provider in India with about 67 million subscribers all over India. They are offering both pre-paid and post paid mobile service and they hold the pride of being the first to offer Enhanced Data Rates and General Packet Radio Service for the evolution of GSM in India. Tata Communications: Tata Communications influence its domain expertise and advanced solutions across its Pan India and global network, with connectivity to more than 400 PoPs, 200 countries and close to one million square feet of collocation space and data center all over the world. Their objective is to deliver managed solutions to Indian consumers, service providers and multi-national enterprises. Tata Teleservices: Tata Teleservices came into existence in the year 1996 and it is one of the 96 companies coming under the roof of Tata group. They hold the pride of being the first to introduce CDMA mobile services in India and they have network in more than 20 circles. The company introduced its mobile operations in the year 2005 under the brand name of Tata indicom and it enjoys a pan-India presence through its operations in all 22 telecom circles in India. Aircel: In the year 2009-10, Aircel recorded a growth rate of 37.2 per cent and they began their journey in the year 1999. They have earned the status of the leading mobile operator in the state of Tamil Nadu in India. Also, the company has emerged as leader in the North Easter states of India within a short period of its launching. MTNL:

Mahanagar Telephone Nigam Limited or MTNL has grabbed a customer base of 8.06 million in two major cities of India being Mumbai and Delhi. At present, the company has more than 9 lakh GSM Connections. They have become the leaders in technology induction by converting its telephone exchange network into digital mode. TTML: TTML is another telecommunication company under the Tate group, who commenced their landline operations in the year 1998. When compared to all other private telecom companies, TTML has the largest wireline base in Maharashtra and Mumbai. The company has more than 6 lakh subscribers in the telecom circles of Mumbai, Goa and Maharashtra. The telecommunication sector in India has recorded several folds of growth in the recent years. This industry is taken to a higher lead due to the private and government sector players in this industry and the companies in this industry are also making their share in the job market in India by offering a wide range of employment opportunities both under technical and under non-technical sector as well.

Read more here: http://entrance-exam.net/top-telecom-companies-inindia/#ixzz1l7tpYfum

Telecommunication Last Updated: December 2011

The Indian telecommunication sector in India is the third largest sector across the globe and the second largest among the emerging economies of Asia. This rapid growth has been possible due to various proactive and positive decisions of the Government and contribution of both the public and the private sector. The rapid strides in the telecom sector have been facilitated by liberal policies of the Government providing thetelecom equipments an easyaccess to the market and a fair regulatory framework for offering telecom services to the Indian consumers at affordable prices. The sector also witnessed a substantial change in terms of mobile versus fixed phones and public versus private participation. The preference for use of wireless phones has also beenpredominant in the sector. Participation of the private entities in the telecom

sector is increasing rapidly, alongside, giving rise to enormous growth opportunities. There is a clear distinction between the Global Satellite Mobile Communication (GSM) and Code Division Multiple Access (CDMA) technologies used within the Indian telecom sector. Market size The sale of mobile devices in India will show of rise of 8.5 per cent in 2012 by growing up to 231 million units from 213 million units last year, according to a research report from Gartner. The research firm says that the Indian mobile handset market is expected to show steady growth through 2015 when end-user sales will surpass 322 million units. The Indian mobile device market is very competitive with more than 150 manufacturers. Smartphone sales in India made up 6 per cent of device sales in the first three quarters of 2011, and this share is expected to increase to 8 per cent in 2012. The Indian mobile device market is driven by the lowest call rates in the world and dominated by low-cost devices, which account for 75 per cent of sales in India in 2011. Indian Telecommunication - Major Investments Nokia has unleashed its biggest-ever marketing campaign in India for the launch of its Windows-based smartphone Lumia, so as to keep itself relevant in a market being swarmed by Google Android phones such as Samsung Galaxy range. This is the first product under the Nokia-Microsoft partnership and Nokia has put in high stakes in the Indian market. Citi India has launched a cash management service which will help its corporate customers collect receivables from their retailers or customers using mobile payment technology. Known as Cash-To-Mobile, this solution will increase the efficiency of collection for the company. It will also help in reducing the cost of transaction and will ensure safe transfer of money. Nokia Siemens Networks has decided to ramp up its India operations in three core areas of mobile broadband, manufacturing and Global Network Operations Centres. "India will be the hub of the transformation that NSN has initiated globally. Investments into India are being ramped up in key focus areas, including global delivery centres and manufacturing. So all of these facilities which gives us global scale and advantage of centralisation is being ramped up, MrSandeepGirotra, head of Nokia Siemens in India, told Business Line. The implementation of India's low-cost telecom model in the African market seems to have paid dividends for the country's largest company in the sector, BhartiAirtel, with the company crossing 50 million subscribers in mobile operations. Bharti acquired Zain's assets in 16 African countries in June 2010, with a subscriber base of 42 million, brought down to an active user base of 36 million. In these 17 months, it has got 14 million users, on the back of low and innovative rate plans, it said. It has 173 million

subscribers in the Indian market. Indian Telecommunication - Policy Initiatives The Telecom policy 2011, will replace the existing framework that has been in place since 1999, and it aims to make the country's telecommunications sector more transparent, relax merger and acquisition norms to encourage consolidation and also give more teeth to sector regulator Telecom Regulatory Authority of India (TRAI). The new policies by the Indian Government also proposes to do away with roaming charges, introduce a stronger customer grievance redressal mechanism, recognize telecoms as an infrastructure sector giving it tax concessions, and extend preferential status to 'Made in India' hardware products, thereby strengthening the Indian Telecom Industry for future challenges. Indian Telecommunication - The Road Ahead The Indian telecom sector is one of the fastest growing sectors in the Indian economy during the past 4 years and has witnessed strong competition as a result of which tariffs have decreased by significant margins, promotion of customer and industry friendly policies and regulations. This has led to a healthy competition scenario within the sector. With a target to further increase the opportunities in the sector, the Indian government is taking proactive measures to develop this sector with the help of the various players in this segment. India, with its telecom success story, represents one of the sought after destinations for investment in the telecom sector. References: Industry reports, Press releases, Media news

Agriculture Last Updated: November 2011

India is the second-largest producer of food in the world and holds the potential of being the biggest on global food and agriculture canvas, according to a Corporate Catalyst India (CCI) survey. The food processing industry is one of the largest in India ranking fifth in terms of production, consumption, export and expected growth. The Indian food industry is projected to reach US$ 300 billion by 2015. Agriculture sector is vital for the nation and is the principal source of livelihood for more than 58 per cent of the population. The growth of the agriculture and allied sectors is expected to be around 5.4 per cent during 2010-11, according to the Economic Survey 2010-11. India targets to achieve 9.5 per cent average economic growth in the 12th Five Year Plan (2012-17), on back of an estimated agriculture growth rate of 4.2 per cent.

The growth target for agriculture for the 12th Five Year Plan was announced by Abhijit Sen, a member of the Planning Commission. The Commission expected the growth in the Indian agriculture sector to touch 3.5 per cent during the Eleventh Five Year Plan (2007-2012), as against 2 per cent in the previous Plan Period, according to Mr Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission. Production Food grain production has reached a record level of 241.6 million tonne (MT) in 201011. We have also achieved the highest ever production of wheat, pulses, oil seeds and cotton. Overall farm output has also achieved an impressive growth rate of 7.5 per cent during the last quarter of 2010-11 thus helping agriculture gross domestic product (GDP) to register a growth of 6.6 per cent during the year, as per Mr Sharad Pawar, Agriculture and Food Processing Industries Minister. The Planning Commission maintains a projected demand of 247 MT by 2020. According to statistics 34,178,963 tonne rice has been procured by various Government agencies as on November 4, 2011. India's sugar production could increase to 25 MT in the 2011-12 marketing season (October-September), brightening the export prospects of the sweetener, as per Mr K V Thomas, the Food Minister. Favorable weather during the growing season in major potato producing states during 2010-11 resulted in about 13 per cent increase in production, from nearly 36 MT in 2009-10 to more than 40 MT in 2010-11. Highlighting the virtues of protected cultivation to boost horticulture productivity, a Rs 30,000 crore (US$ 6.07 billion) outlay has been proposed for bringing at least 10 per cent of the horticulture crop area in India under this high tech cultivation practice in the 12th Five Year Plan (2012-2017). An area of 21 million hectares is under horticulture in India and contributes over 230 MT to the food basket of the country. Exports India is among the 15 leading exporters of agricultural products in the world. Fruits and vegetables together constitute about 92.3 per cent of the total horticultural production in the country. India is the second largest producer of fruits in the world; it is the largest producer of fruits like mango, banana, papaya, sapota, pomegranate and Aonla. About 40 per cent of the worlds mangoes and 30 per cent of the worlds bananas and papayas are produced in India. In terms of productivity of grapes, India ranks first in the world.

India is the second largest producer of vegetables and is a leader in the production of peas and okra. Besides, India occupies the second position in the production of brinjal, cabbage, cauliflower and onion and third position in potato and tomato in the world. India is Burmas fifth largest trading partner, and it exports more than 1 MT of beans annually. India is looking for ways to invest in Burmas agriculture and energy sectors. India has already begun exporting 300,000 tonnes of rice to Bangladesh on government-to-government account at Rs 20,000 (US$ 404.85) a tonne from September 2011. The exports will be from the 3,000,000 tonnes of non-basmati rice permitted by the Centre on the heels of record production in wheat and bulging buffer stocks. India's coffee exports rose by 42 per cent to record 360,540 tonnes in the 2010-11 coffee year ended September 2011, according to a report by the International Coffee Organisation (ICO). Investments The agriculture services attracted foreign direct investment (FDI) worth US$ 1.42 billion between April 2000 to August 2011, according to data released by the Department of Industrial Policy and Promotion (DIPP).

The World Bank has approved a US$ 250 million credit and loan to the West Bengal Accelerated Development of Minor Irrigation Project (ADMIP) for augmenting agricultural production of small and marginal farmers. Irrigation will continue to be critical to increasing farm production, income and rural livelihood, according to Mr Roberto Zagha, Country Director for India, the World Bank. The Bank study establishes that irrigation has a strong and significant impact on land productivity, cropping intensity and land prices Foreign investors' are showing interest in fertiliser makers such as Chambal Fertilisers, Coromandel International and Rallis among others, due to decontrol of phosphatic and complex fertiliser prices. "Good monsoons this year, has resulted in strong demand," as per Tarun Surana, Research Analyst, Sunidhi Securities Organic farming has become a promising method of agriculture and is gaining global recognition. La Via Campesina is an international farmers' organisation, having its presence in more than 70 countries. The aim of the organisation is to provide technical, financial support to local and national farmers' organisations across the world, which includes promoting agriculture activities such as organic and natural farming Karuturi Global, the city-based publicly-held floriculture major and one of the worlds largest exporter of roses which is aggressively rolling out an agriculture business venture in Ethiopia, is looking at outsourcing 20,000 hectares of farm land in the African nation to Indian farmers on a revenue-sharing basis. The company hopes to get 35 per cent of its revenues from the agriculture business

in the next couple of years Pune is witnessing a new trend where farmers are approaching consumers directly with their produce. Farmers have adopted a direct-to-home model that will enable people to buy online as well as from outlets Cargill India Private Ltd, best known for its edible oil brand Nature Fresh, is planning to expand its packaged-food portfolio in the country

Government Initiatives The Union Government is setting up a National Centre for Food Technology in Haryana with a regional centre likely to be located in Hyderabad, as part of initiatives under the National Mission for Food Processing. In the Union Budget 2011-12, Mr Pranab Mukherjee, the Finance Minister made the following announcements for the agriculture sector:

Expenditure worth US$ 65.1 million to promote 60,000 pulses villages in rain fed areas for increasing crop productivity and strengthening market linkages Proposal to spend US$ 65.1 million to promote oil palm plantation in 60,000 hectares and US$ 65.1 million for the initiative on vegetable cluster A proposal to spend US$ 86.8 million, to improve rice based cropping system in the Eastern Region

Furthermore, the Government plans to set up 15 new mega food park projects under the infrastructure development scheme with a total grant of Rs 787.50 crore (US$ 159.41 million). This is in addition to the 15 on-going projects. The Cabinet Committee on Economic Affairs (CCEA) has approved the 15 mega food projects, which will create infrastructure that would enhance the efficiency of supply chain from farm gate to retail outlets. Each project is expected to entail an investment of about Rs 100 crore (US$ 20.24 million) in common facilities and will leverage an additional investment of Rs 250 crore (US$ 50.59 million), the Government said in a statement. Each park is expected to benefit about 6,000 farmers directly and will indirectly benefit 25,000 to 30,000 farmers. Each mega food park will generate about 40,000 direct and indirect jobs, the statement further added. The banks have disbursed agriculture loans worth about Rs 446,779 crore (US$ 90.44 billion) as against the target of Rs 375,000 crore (US$ 75.91 billion) fixed by the Government for lending to Agriculture sector in 2010-11. In September 2011, bank disbursements to agriculture and allied activities went up by 7.9 per cent to Rs 433,000 crore (US$ 87.65 billion). The National Bank for Agriculture and Rural Development (Nabard) has sanctioned Rs 42.12 crore (US$ 8.53 million) to Karnataka State Warehousing Corporation to increase food grain storage capacity.

The new line of credit is given to the corporation through Nabard Infrastructure Development Assistance (NIDA) for creation of 131,000 tonnes storage capacity spread over 10 districts. The Centre has approved Rs 47.21 crore (US$ 9.56 million) as subsidy for Punjab under National Food Security Mission (NFSM) for wheat and pulses to boost their output. The Ministry of Agriculture has sanctioned funds to the tune of Rs 38.39 crore (US$ 7.77 million) for wheat and Rs 8.82 crore (US$ 1.78 million) for pulses for the 2011-12, a senior official of Punjab Agriculture Department said. In order to give 20 million farmers, farming information, weather and climatic details to help them meet agricultural targets, it has been decided to cover it through SMSs and the Integrated Voice Response System (IVRS) by 2017."The SMS and IVRS mode were launched in 2009 covering 5,000 farmers. It now covers 2.8 million growers and by 2017 the method would cover 20 million," as per Mr N Chattopadhayay, Deputy Director General, India Meteorological Department (IMD). Road Ahead India is keen to forge partnerships with the Association of South-East Asian Nations (ASEAN) countries for the exchange of technology to enhance farm productivity and address the impact of climate change on agriculture. Mr Sharad Pawar, the Agriculture Minister attended a meeting of ASEAN agri ministers in Indonesia's capital, Jakarta. This was the first-ever joint meeting of the agriculture ministers of South-East Asian countries and was aimed at fostering cooperation in the vital sector. Indian scientists have joined 16 other nations - the US, the UK, France, Italy, Switzerland, Germany, Czech Republic, Norway, Israel, Turkey, Russia, China, Japan, Australia and Argentina - in the initiative. The department of biotechnology (DBT) has sanctioned about Rs 34 crore (US$ 6.88 million) for over four years to three institutes Punjab Agriculture University, ICAR and Delhi University - for the project."The project is likely to be completed in five years. But, we will crack the code within three years," as per Prof Nagendra Kumar Singh from ICAR's National Research Centre on Plant Biotechnology in New Delhi said. Agri-scientists are working on hybrid varieties of fruits like mango, grape and lemon to increase their productivity to meet the increasing demand. Indian Agriculture Research Institute (IARI) scientists are working on hybrid versions of different mango varieties The Government of Indias focus in the 12th Five Year Plan will be mechanisation of agriculture to match the growing need for higher production of food grain and to tackle labor shortages in the farm sector. The Government has taken many policy initiatives and Missions to strengthen the farm credit delivery system for providing credit at affordable rates of interest to support the resource requirements of the agricultural sector. The emphasis of these initiatives is to

provide timely and adequate credit support to farmers with particular focus on small and marginal farmers. The initiatives strive to enable and motivate the farmers to adopt modern technology and improved agricultural practices for increasing agricultural production and productivity. Automobiles

Last Updated: January 2012 Indian Automobile Industry: Brief Introduction India is the world's second fastest growing auto market and boasts of the sixth largest automobile industry after China, the US, Germany, Japan and Brazil. According to Vikas Sehgal, Global Head of automotive industry, Rothschild, the Indian automobile market, which includes cars, trucks and auto parts, is pegged at 3.5 million units by the end of 2011-12. Rothschild is a UK-based global financial advisory firm. India's car market is evolving at a great pace. A car is not only a utility, but also represents aspirations and image of its owner. Hence, auto giants across the globe are leaving no stone unturned to attract Indian consumers by offering luxury, value, utility and convenience in their products. Key developments, initiatives, investments et al pertaining to the sector are discussed below. Market Dynamics Indian domestic passenger vehicle market is increasingly getting dominated by smaller cars. For the quarter ended December 2011, Maruti Suzuki India Ltd held a share of 34.3 per cent in domestic passenger vehicle pie while Hyundai India enjoyed 15.8 per cent of it. Tata Motors (standalone operations) and Mahindra & Mahindra (M&M) had a market share of 14.6 per cent and 12 per cent respectively during the reported period. Key Statistics

The Society of Indian Automobile Manufacturers (SIAM) anticipates 11-13 per cent growth in car sales during 2012-13 The overall Indian automobile sector recorded a growth of 14.25 per cent (16.9 million units from 14.8 million units in 2010) in 2011. Passenger car sales increased by 4.24 per cent to 1.946 million units (from 1.867 million units in 2010), two-wheeler sales by 16.22 per cent to 13 million units and three-wheeler sales by 4.74 per cent to 525,000 units For 2011-12, passenger cars sales are expected to grow at 0-2 per cent, twowheelers at 13-15 per cent and commercial vehicles at 18-20 per cent The cumulative production for April-December 2011 registered a growth of 14.94 per cent over same period in 2010. Production in December 2011 increased by 10.91 per cent year-on-year (Y-o-Y) Overall automobile exports registered a growth rate of 28.97 per cent during April-December 2011. Passenger Vehicles registered grew 18.14 per cent in this period while two-wheelers, commercial vehicles and three wheelers segments recorded growth of 29.75 per cent, 24.66 per cent and 42.63 per cent respectively

Indian Automobile Industry: Major Developments & Investments

Ford Motor Co's Indian subsidiary has placed an order with its Indian counterpart major constructor Kajima Corp's subsidiary to develop an auto factory in the city of Sanand in Gujarat. With an estimated outlay of 77 billion yen (US$ 1 billion), the facility is expected to get completed by 2014 with an initial annual capacity of 240, 000 units. Bajaj Auto India's second largest automaker has made a debut in four-wheeler segment by launching a low-cost, eco-friendly automobile - RE60. The four wheeler vehicle has three-wheeler customers as its target market and is available in three fuel variants (petrol, CNG and LNG). The company sees Sri Lanka and Africa as potential export markets for RE60. Indian auto major M&M is looking to develop enough infrastructure to run electric cars in India. The first company to commission solar power projects under the Jawaharlal Nehru National Solar Mission (JNNSM), M&M is on a look-out for solar powered charging stations to fuel electric cars. The company offers electric cars under the Mahindra-Reva brand. Luxury car maker Mercedes Benz AG's Indian subsidiary Mercedes Benz India Ltd (MBIL) has set itself an ambitious target to sell over 70,000 cars in the Indian market by 2020; aiming for 1000 per cent growth in the next 9-10 years and hence leading the luxury car segment. The company will launch its A Class concept in India in 2013 and has already invested Rs 700 crore (US$ 135.85 million) in a new assembly plant in India. Last Updated: January 2012

With an intention to take on Maruti Suzuki India Ltd's largest-selling Alto hatchback, Nissan Motor Pvt Ltd is planning for a small car for Indian markets. The company is studying the market currently and would come up with a crisp plan in 2-3 years. Auto Expo: A Grand Success India's 11th Auto Expo jointly hosted by SIAM, Confederation of Indian Industry (CII) and Automotive Component Manufacturers Association (ACMA) took place at Delhi's Pragati Maidan during January 5-11, 2011. A grand success in terms of footfall, the exhibition embraced 1,500 participants from 24 countries and witnessed launch of over 50 new products. Indian automaker Maruti Suzuki unveiled its XA Alpha concept sports utility vehicle (SUV) while Hyundai showcased its new Sonata and its concept multi-purpose vehicle Hexa Space. German automobile major Volkswagen launched new versions of its SUV Touareg and its small car Beetle along with its concept hybrid car XL 1. Japanese auto giant Nissan Motor Company showcased its seven-seater car, the Evalia along with its

zero-emission electric car Leaf, the Nissan GTR and the Compact Sports Concept. Similarly, other auto makers like Mercedes-Benz, M&M, BMW and Ford unveiled their new products. In the two-wheeler space, Suzuki Motorcycles, Yamaha India unveiled their offerings while Royal Enfield and Harley Davidson made their bike launches. Thus, it can be reasonably stated that major auto makers - Indian as well as foreign are making all the efforts to please Indian auto enthusiasts and Auto Expo is a perfect platform for them where they can reach out to masses in the most effective way. Government Initiatives The Government of India is in the process of forming a National Automotive Board (NAB) which would become a formal set-up to look into the issue of recall of vehicles and hence improve manufacturing standards. The prospective body, to oversee technical and safety aspects of vehicles, will have representatives from all the nodal ministries and automotive bodies such as the Automotive Research Association of India (ARAI). The Government of Gujarat has always been on a high to promote its industrial space especially its the automobile sector. In order to boost the State Government's efforts in this regard, Gujarat Government's Industrial Extension Bureau, along with Automotive Components Manufacturers Association, French Vehicles Equipment Industries (FIEV) and French auto-major Peugeot, organised a seminar and business meeting on January 9, 2011 wherein 60 French automobile component makers were briefed on opportunities to set up vendor park near Sanand (Gujarat's auto hub) in Ahmedabad district. Similarly, the Government of Gujarat has announced its plan to disburse 240 acres of land at Sanand to the All India Plastic Manufacturers Association (AIPMA) to set up a plastic park that could attract an investment of about Rs 5000 crore (US$ 970.33 million). The Government's move marks its eye for detail as the measure has come in the light of the fact that a finished car would require about 150 kgs of plastic. Road Ahead According to a study by Rothschild, India would become the third largest auto industry by volumes after China and the US by 2015. Three- fold increase in investments by auto makers would boost car production capacity from 4.8 million units in 2010 to 12 million in 2018. The firm anticipates that the forecast would come to reality through 30 new factories that are estimated to come up in next eight years. The firm holds a bullish outlook on Indian auto industry and predicts a row of mergers and acquisitions in the coming years. Exchange Rate Used: INR 1 = US$ 0.0194 as on January 14, 2012

JPY 1 = US$ 0.0129 as on January 14, 2012 References: Media Reports, Press Releases, Society of Indian Automobile Manufacturers (SIAM) publications

IT & ITeS Last Updated: November 2011

IT & ITeS in India - Brief Introduction Over the past few years, the Indian information technology (IT) and IT enabled Services (ITeS) industry has been on a steady growth trajectory. The IT industry, alone, has played a pivotal role in placing India on the world map as a major knowledge-based economy and outsourcing hub. The major sub-segment, that entails Business Process Outsourcing (BPO), is re-inventing itself and experiencing a paradigm shift from being a volume-oriented proposition to a value-oriented proposition by expanding its scope of services and providing substantial high-end solutions in the areas of Data Analytics, Legal Process Outsourcing, etc. The number of internet users in India crossed the 100-million mark in September 2011, growing 13 per cent over last year's figure of 87 million, according to the latest report of the Internet and Mobile Association of India (IAMAI) co-prepared with research firm IMRB. The study anticipates India's internet population to grow to 121 million by December 2011. Further, the country's broadband subscriber base stood at 12.69 million in August 2011, according to data released by the Telecom Regulatory Authority of India (TRAI). Competitive Landscape After personal computers (PCs) and laptops, tablets are mushrooming as a major competitive avenue wherein vendors are striving hard to launch more affordable devices for the Indian market. Second quarter of 2011experienced the release of the iPad2 in India in less than 50 days after its US launch while Samsung is scouting for 40 per cent share of the Indian tablet market in 2011. In the enterprise software segment, US giant Oracle claims to cater around 7,000 clients across the Indian government and private sectors; recent wins being Punjab National Bank (PNB) - India's second-largest public sector bank and Hindustan Petroleum Corporation (HPCL) - another Indian public sector organ. Meanwhile, Indian IT companies like Wipro, Infosys, TCS, HCL and Mahindra Satyam are developing their technologies to entail cloud computing applications and solutions for various segments

ranging from financial services and banking to manufacturing. IT & ITeS - Key Developments and Investments Between April 2000 and August 2011, the computer software and hardware sector received cumulative foreign direct investment (FDI) of US$ 10,787 million, according to the Department of Industrial Policy and Promotion (DIPP).

Monster India has launched an online campus hiring initiative - 'Monster College' wherein it will collaborate with educational institutions across India and connect them with over 20,000 employers for campus placements. Investor Relations Global Rankings (IRGR), a New York-based organisation, has ranked Technology giant Infosys as the country's best company for corporate governance practices, financial disclosure procedures, IR website and online annual report. There were more than 80 companies that registered themselves for the rankings. Tower infrastructure company Indus Tower is looking for a partner to provide end-to-end IT solutions and Indian tech-biggies like Infosys, IBM and Wipro are in discussions with the former for the same. The contract, potentially in the range of Rs 2,430-2,916 crore (US$ 500-US$ 600 million), would involve areas such as infrastructure management, application development and other related managed services and would span for 8-10 years. Indus Tower, a joint venture firm between Bharti Group, Idea Cellular and Vodafone Essar, owns 110,000 towers and operates 16 out of the 22 telecom circles. Google, with its partner web hosting firm HostGator, has announced that it will offer free web domain names to small and medium businesses (SMBs) in India in order to boost internet usage in Asia's third largest economy. The company will maintain the websites for a year without any charges and at the end of the first year, users will be asked to pay a nominal fee if they wish to renew their domain name. India is shelter to around 8 million SMBs of which about 400,000 have a website and 100,000 have active online presence, said Google. Hence, the market poses a great potential for growth.

Last Updated: November 2011

Cloud Computing The Emerging Technology

The model of cloud computing has attracted attention of organizations of all sizes as the technology offers lower operational costs, scalability and mobility at every level. Indian companies are increasingly adopting 'hybrid clou

(a mix of private and public cloud) to address their concerns of data privacy as well.

Indian businesses and government agencies are expected to create huge demand for guidance in the usage of clou computing services. There are already more than 50 cloud computing service providers in the Indian market. Meanwhile, Indian internet services providers (ISPs) and data centre service providers including Bharti Airtel, Sify, Trimax, and NetMagic are investing applications and bandwidth to support new cloud service offerings.

NTT Communications Corp plans to invest US$ 1.58 billion in Europe and India over 2011-15 to develop its clo computing business at a faster pace while AWS, the world's largest cloud-based service provider, that forms abou 2 percent of Amazon's revenues, is projected to become the online retail giant's next most-profitable business in India. Soaring e-Commerce

The US$ 10 billion Indian e-commerce market is expanding exponentially (it grew 47 per cent in 2011 to reach t present size) as rising internet penetration is making customers buy more and more stuff online. Investors are als betting high in the industry; they poured around US$ 200 million into Indian e-commerce start-ups in last couple years. As a result of such growth, e-retailers, who want to focus on their core functionalities, are expected to outsource bulky back-end operations (such as customer care, order processing, invoice processing, finance and accounts et and emerge as a substantial source of revenue to BPOs.

Retail brands are expected to bring a great transformation in online space. Women's apparel retail brand Biba and tyre brand Bridgestone have become available online recently. IAMAI expects online advertising to increase by 30-40 per cent in 2011-12 on back of increased internet usage by retailers. Government Initiatives The government of India is leaving no stone unturned to accelerate growth of IT & ITeS sector in the country. Earlier in 2011, the ministry had revealed its intentions to launch e-governance initiatives that would facilitate rolling out mobile governance and electronic service delivery bill. Sufficient funds have also been earmarked to connect Indian villages and classrooms across the country with knowledge centres wherein the government aims to provide broadband connectivity to all the village panchayats 2012. Mr Sachin Pilot, Minister of State for Communications and IT believes that broadening connectivity in such a manner would improve the way government interacts with people.

Further, the Ministry of Communications and Information Technology has revealed its intentions to attract highe investments for IT sector in smaller cities and make software services sector grow more than three times to US$ 300 billion by 2020. The government also wants to increase the IT exports from US$ 59 billion currently to US$ 200 billion by 2020. The projections and focus areas were laid in a draft national policy which also stated that the government will endorse innovation, research and development (R&D) in advanced technologies and application

development in areas such as cloud computing, mobile value-added services and social media. The policy also aimed at employing additional 10 million skilled people in the information communication technology sector. The sector currently has manpower strength of 2.5 million skilled people. IT & ITeS in India - Road Ahead

The Indian market for IT products and services is expected to consolidate its growth achieved in 2010 and increa from US$ 19.7 billion in 2010 to US$ 41.2 billion by 2015, according to India Information Technology Report fo the third quarter of 2011by Business Monitor International (BMI). BMI estimates that the Indian market for PCs (including notebooks and accessories) will be worth around US$ 8 billion in 2011, higher from US$ 6.8 billion in 2010 while it projects IT services market at around US$ 7.5 billion in 2011 which would further swell to a size o US$ 16.9 billion by 2015. The report has estimated a compounded annual growth rate (CAGR) of 18 per cent for Indian software market over the span of 2011-2015. Exchange Rate Used: INR 1 = US$ 0.0204, as on November 8, 2011 References: Press releases, media reports, Department of Industrial Policy and Promotion, Business Monitor International (BMI) report, Internet and Mobile Association of India (IAMAI) report, Research publications, NASSCOM

Pharmaceuticals Last Updated: November 2011

The Indian pharmaceutical market is expected to grow to US$ 55 billion by 2020 from the 2009 levels of US$ 12.6 billion, as per a McKinsey & Company report titled India Pharma 2020: Propelling access and acceptance realising true potential. The industry further holds potential to reach US$ 70 billion, at a CAGR of 17 per cent. Indias pharmaceutical industry constitutes of about 8 per cent of the worlds pharmaceutical production. Over the last couple of years, Indian pharma companies have been increasingly targeted by multinationals for both collaborative agreements and acquisition, as per a Espicom report titled, The Pharmaceutical Market: India Opportunities and Challenges. Sector Structure/ Market Size The US$ 12 billion valued pharmaceutical industry in India is expected to grow at an annual compound annual growth rate (CAGR) of 10-11 per cent. The industry spends

around 18 per cent of its revenue on research and development (R&D). India is one of the most significant emerging markets for the global pharmaceutical industry. Moreover, India is expected to join the league of top 10 global pharmaceuticals markets in terms of sales by 2020 with the total value reaching US$ 50 billion, according to a report by PricewaterhouseCoopers (PwC). The domestic pharma market is expected to grow at a CAGR of 15 to 20 percent to reach a value anywhere between USD 50 and 74 billion by 2020, says a PwC report titled India Pharma Inc: Enhancing Value through Alliances & Partnerships. Exports Indias exports of drugs, pharmaceutical & fine chemicals stood at US$ 9.26 billion during April 2010Feb 2011, up 16.15 per cent as compared to US$ 7.97 billion in the same period during the previous year. Indias exports has recorded a growth rate of over 20.07 per cent, during the period of the two financial years in the study, the exports to rest of the world has grown by 9 per cent, according to DGCIS data from Pharmexcil Research. India and Russia signed a memorandum of understanding (MoU) last year. Another will be signed in December 2011, as per Mr Devendra Chaudhry, Joint Secretary, Department of Pharmaceuticals. Indian pharma companies export drugs worth US$ 600 million to Russia every year. Pharma sector accounts for the largest Indian export to Russia. Growth The drugs and pharmaceuticals sector attracted foreign direct investments (FDI) worth US$ 4.89 billion between April 2000 and August 2011, according to the latest data published by Department of Industrial Policy and Promotion (DIPP). Indian pharmaceutical market is predicted to grow to US$ 55 billion by 2020 from US$ 12.6 billion in 2009, according to a report by McKinsey. On back of a high middle-class population base, improvements in medical infrastructure and the establishment of intellectual property rights, the Indian pharma industry is estimated to grow manifold. Generics Generics will continue to dominate the market while patent-protected products are likely to constitute 10 per cent of the pie till 2015, according to McKinsey report India Pharma 2015 - Unlocking the potential of Indian Pharmaceuticals market. Moreover, as per a press release by research firm RNCOS, the report titled Booming Generics Drug Market in India'. The report further projects the Indian generic drug market to grow at a

CAGR of around 17 per cent between 2010-11 and 2012-13. India tops the world in exporting generic medicines worth US$ 11 billion. Currently, the Indian pharmaceutical industry is one of the world's largest and most developed, according to Mr Srikant Kumar Jena, Union Minister of State for Chemicals and Fertilisers.

Dr Reddy's Laboratories Ltd has entered into a MoU with Tokyo-based Fujifilm Corporation to form a joint venture (JV) in Japan. The venture would develop, manufacture and promote generic drugs in Japan Ranbaxy Laboratories announced that it is on track to launch the generic version of the world's largest-selling drug, Lipitor-the anti-cholesterol pill, on November 30, 2011 in the United States (US), as per Tsutomu Une, Chairman, Ranbaxy Natco Pharma has applied for India's first compulsory licence to sell a generic version of Bayer's patented medicine, stating in its application that the German company's drug was unaffordable for the average Indian Natco Pharma has also entered into an exclusive agreement with Mabxience, part of Chemo Sa Lugano of Switzerland. Natco will purchase four drug substances (biogenerics) from Chemo Sa Lugano and use them for manufacturing finished dosage pharma formulations British consumer goods major Reckitt Benckiser is converting its Baddi plant in Himachal Pradesh into a global hub for manufacturing over-the-counter (OTC) pharmaceutical products. The facility, will export Reckitt brands as well as domestic Paras brands

Diagnostics Outsourcing/ Clinical Trials In India, the clinical research industry is estimated to be a US$ 2.2 billion with a healthy CAGR of 23 per cent. India is ranked as the third largest emerging market and is growing fastest in conducting number of trials. The Indian diagnostic market is projected to grow at a CAGR of more than 22 per cent between 2010 and 2012, as per a RNCOS research report Indian Diagnostic Market Analysis. Investments

A six-member pre-trade mission from Maryland, US, visited the Ticel Biotechnology Park and the biotechnology infrastructure facility, to explore areas of collaboration in biotechnology and pharmaceuticals. The advance planning team met with industry representatives and officials to explore partnerships and investment opportunities Aurobindo Pharma Ltd has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Gabapentin tablets. Gabapentin tablets are the generic equivalent of Neurontin tablets of Pfizer Pharmaceuticals, indicated for the treatment of partial seizures and other

nervous system disorders. Aurobindo now has a total of 139 abbreviated new drug application approvals including 110 final approvals and 29 tentative approvals from the US Strides Arcolab Ltd, maker of intellectual property led pharmaceutical products announced that it has received US FDA approval for clindamycin injection, USP, an antibiotic used to treat bacterial infections Sanofi-aventis Group is setting up its largest vaccine making facility in Hyderabad. "The new plant, our biggest facility in the world, is coming up here," according to Christopher A Viehbacher, Chief Executive Officer, Sanofi-aventis GlaxoSmithKline (GSK) has set aside US$ 1-2 billion to support its expansion plans in India. "We can afford a deal worth US$ 1- US$ 2 billion in the Indian pharmaceutical space," as per Andrew Witty, global CEO, GSK Lupin is set to enter the US oral contraceptive market. The company has received final approval from the US Food and Drug Administration (USFDA) to market a generically similar version of Watson's oral contraceptive NOR-QD tablets Singapore-based pharmaceuticals company Invida has agreed to acquire New Delhi's Shalaks Pharmaceuticals for US$ 25 million A three-day pharma business meet of India, Latin America and Caribbean (LAC) took place on September 28, 2011. "The objective of the meeting was to provide business opportunity to Indian pharma exporters, especially Small and Medium Enterprises," as per P V Appaji, Executive Director, Phamaceutical Export Promotion Council Daiichi Sankyo Company Ltd and Ranbaxy Laboratories Ltd have announced expansion of their business in Mexico, to maximise their hybrid business model. As part of the plan, the two companies will launch Olmesartan Medoxomil, used to treat high blood pressure, in Mexico before the year-end Aventis Pharma Ltd, a unit of France's Sanofi, plans to acquire unlisted Universal Medicare's nutraceuticals business to boost its consumer healthcare and wellness segment in India. Aventis was close to buying the over-the-counter (OTC) business of Universal Medicare for about US$ 109.5 million

Government Initiative A high-level inter-ministerial group chaired by the Prime Minister Mr Manmohan Singh has decided to continue with the 100 per cent foreign direct investment (FDI) regime in the pharmaceuticals sector. "There is going to be no cap. 100 per cent FDI would be allowed," as per Arun Maira, Member, Planning Commission. Marking a new trend of investments from foreign players in the Indian pharma sector, the need for overseas investors to get a no-objection from their JV partner before venturing out on their own or roping in another local firm has been removed by the Pharmaceuticals Export Promotion Council. It is expected that this measure will promote the competitiveness of India as an investment destination and be instrumental in attracting higher levels of FDI and technology inflows into the country.

The Union Minister of Commerce and Industry and Minister of Trade and Industry, Singapore, have signed a Special Scheme for Registration of Generic Medicinal Products from India, which seeks to fast-track the registration process for Indian Generic medicines in Singapore. The Department of Pharmaceuticals has prepared a "Pharma Vision 2020" for making India one of the leading destinations for end-to-end drug discovery and innovation and for that purpose provides requisite support by way of world class infrastructure, internationally competitive scientific manpower for pharma research and development (R&D), venture fund for research in the public and private domain and such other measures. Road Ahead On back of aggressive marketing initiatives, the pharma companies witnessed rural market sales doubling. India's rural drug market grew by 18.8 per cent in the 12 months period ended April 2011 as compared with 10.9 per cent in the previous year. With the focus of companies shifting to smaller deals catering to niche segments and markets, partnerships seems to be the new norm in the pharmaceutical sector. Today, domestic pharmaceutical majors are talking less of patent litigation and more of patent settlements. The fight seems to be giving way to partnerships and experts consider this the new way forward. Companies such as Ranbaxy and Dr Reddys were known for big acquisitions. Interestingly, the international drug-makers have introduced generic or low-priced version of popular medicines and have also decreased prices of their existing products in order to increase their share in the globally important market - in India. The Indianmakers business model is built around selling large volume of cheap generic medicines at lower margins in the country, to add to twin purpose of affordability and popularity. "The industry posting healthy growth consecutively for the second year reflects the inherent strengths of the industry and improving healthcare standards in the country... demand for drugs and pharmaceuticals is on the rise, and is likely to continue next year as well. The nutraceutical segment will continue to have better-than-average growth with people getting more conscious of their general health and well-being," as per Ganesh Nayak, Executive Director, Zydus Cadila. References: Consolidated FDI Policy, Department of Industrial Policy & Promotion (DIPP), Press Information Bureau (PIB), Media Reports, McKinsey Report, Pharmaceuticals Export Promotion Council