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Business
Insurers Will Soon Have An Easier Solvency Mandate 
India's life insurers are set to see more financial stability in their business, with insurance regulator IRDA set to link the amount
of capital that companies need to earmark for their business with the economic cycle. The proposed framework, known as dynamic-solvency requirement, will allow insurers to allocate much less capital during a bust and more capital during a boom. Such a framework will reduce the strain on capital when the economy goes through a rough patch. Eventually, it will improve the financial stability of insurers and, in turn, their capacity to settle claims. At present, the prescribed solvency margin, which is the excess of assets held by the insurer in the interest of policy holders is 150%. The solvency margin requirement will be much lower than the prescribed norm during an economic downturn. But this would mean that insurers will have to reckon with a higher solvency requirement during a boom. Simply put, they will have to save for a rainy day to tide over tough times when their sales and growth in business dips. Solvency margin requirements are the equivalent of capital adequacy norms for the banking industry. RBI is already following the practice of having prudential norms that are countercyclical. For instance, in the past, RBI has increased the margin requirement for loans against shares when equity indices touched a new high. The central bank has also varied capital requirements for banks by tinkering with risk weightage on loans. In real estate loans, the central bank had increased the risk weightage when property prices soared in 2008 only to reduce them again when prices crashed in 2009. IRDA too had reduced capital requirements for life insurance companies in 2008, following the crash in equity markets worldwide. The regulator had reduced capital requirements by almost a fifth in January 2009. For products with a guaranteed return, the capital requirement had been eased by 7%, whereas for products where there is no guarantee, the reduction is 20%. Given the industry's product composition, the overall capital requirement towards solvency margin would be lesser by 18%. Source: Economic Times Insurers will soon have an easier solvency mandate Click On "Full Story" For More.... (531 words in story) Full Story By ugesh sarkar, Section BusinessPosted on Tue Jan 05, 2010 at 09:32:00 PM EST
Bihar Needs To Look At Own Entrepreneurs
Bihar is rich in human resources. It turns out unskilled and semi-skilled workers with the same rapidity as IIT engineers and civil servants. Long is the list of top engineers, doctors, civil servants and technocrats from the state. Business schools, medical and engineering colleges always have a more than proportionate participation from Bihar.
Yet, the state is not even a blip on the radar screen of the corporate sector. Human resource-intensive sectors like information technology and information technology-enabled services have shunned the state. In fact, Bihar does not feature in the game plan of most corporations. Apart from Hindustan Unilever, no other blue-chip company has of late put money in the state. Trucks come laden with stuff from neighbours like West Bengal, Uttar Pradesh and even Madhya Pradesh but go back empty. Essential commodities are all imported from other states and, therefore, sell at a premium. Cement, for instance, in Bihar is at least 5 per cent costlier than in the neighbouring West Bengal. In the past, industry's bugbear was the poor law and order situation in the state. There was nobody to guarantee the safety of executives posted there. The Nitish Kumar administration has made Bihar a better place. "If you go to any park at Patna in the morning, you will find big cars of every description," according to Chief Minister Nitish Kumar. The point is important. Earlier, such was the terror of kidnappers and extortionists that people had clamped down on any expenditure that could give away their wealth. Not any longer. When Kumar took over the affairs of the state four years ago, there was hope that the state's defunct sugar industry would revive. Bihar contributed a fourth of the sugar produced in the country before Independence. It now accounts for less than 3 per cent. Source:Business-standard Bihar needs to look at own entrepreneurs Click On "Full story" For More... (806 words in story) Full Story By ugesh sarkar, Section BusinessPosted on Sat Jan 02, 2010 at 12:09:46 AM EST
Bihar To Set Up 720 Mini Dairies
The Bihar government has decided to set up 720 mini-dairies to promote the industry in the state.
By ugesh sarkar, Section Business
An official Thursday said the state cabinet has approved the setting up of the dairies across the state. 'The government has decided to open 600 mini-dairies with four-five cattle and 120 with 10 cattle,' the official said. The state government would provide 20 percent subsidy to people interested in setting up the dairy units. 'By providing financial assistance, the government is aiming to increase milk production in the state,' the official added. The Bihar State Co-operative Milk Producers' Federation (COMPFED) currently sells milk products under the Sudha brand name. COMPFED's daily milk procurement crossed the seven lakh litres-mark a few months ago, and is estimated to top nine lakh litres a day shortly. Source: sify.com Bihar to set up 720 mini dairies Posted on Sat Dec 26, 2009 at 01:42:09 AM EST
Decks Cleared For Setting Up Jute Park At Maranga
Jute cultivation in the four districts of Purnia division - Purnia, Katihar, Kishanganj and Araria - is likely to get a new fillip.
Reason: decks have been cleared for setting up of a jute park in Maranga, about 10 km south of Purnia town, by Jute Corporation of India (JCI). With that, farmers in the two districts of Purnia and Katihar would have yet another cash crop other than banana to earn extra money to be deposited in banks. The increased deposits in banks operating in Purnia division had surpirsed even deputy CM Sushil Kumar Modi. Otherwise, jute, along with maize, had for long been the major cash crop for farmers there after the practice of cultivating tobacco went out of fashion in the 1970s. It is learnt that the state government has finally allotted 44.5 acres of land for the establishment of jute park at Maranga. The procedure for acquisition and transfer of land was delayed, because the JCI was to make the constructions and, therefore, the state's bureaucratic set up down to the district deemed the project as nobody's baby for obvious reasons! Yet, the initiative with regard to land aquisition and transfer was made by Bihar Industrial Area Development Authority (BIADA) with some seriousness, even as JCI had been prodding the establishment for the last two years. The Centre,m meanwhile, has already increased the minimum support price (MSP) for jute. While earlier it was Rs 1,235 per tonne, the present MSP for jute has been fixed at Rs 1,375 per tonne. Source: Times Of India Decks cleared for setting up jute park at Maranga Click On "Full Story" For More... (407 words in story) Full Story By ugesh sarkar, Section BusinessPosted on Sun Dec 20, 2009 at 10:14:04 PM EST
`Bihar Will Be A Developed State'
Professionals from Bihar who have made a mark in various fields at home and abroad say the state is changing and will be developed in the coming years."Bihar is on the verge of change and development, positive signs are visible," said Sampada Singh, chairman of pharma company Alkem Labs, at a two-day conclave on Bihar that began here Saturday.
"Still, more miles have to be covered by Bihar before it becomes a paradise for investment and development," Singh said after inaugurating the conclave. Pulak Prasad, the founder of Singapore-based Nalanda Capital, said industrialisation is the key to the state's development. "Bihar cannot develop without industrialisation. It is high time that industries are set up on the public-private partnership format," Prasad added. M.J. Warsi, who teaches at Washington University in St Louis, appealed to the privileged sections to help the people of Bihar attain better standards of living. "But that cannot be posssible unless we share more than our money, we must share our talents, ideas, energies along with our investible surplus." Source:Thiandian.com `Bihar will be a developed state' Click On "Full Story" For More... (303 words in story) Full Story By ugesh sarkar, Section BusinessPosted on Sat Dec 19, 2009 at 11:12:44 PM EST
Maize To Attract Investment In Bihar
Maize, which is both Kharif and Rabi crop in Bihar, has succeeded in attracting large investment for manufacture of poulty feed and starch.
According to B Rajendra, director, agriculture department, , the efforts of Maize and Poultry Task Force (MPTF) of Bihar Agriculture Competitiveness Partnership will at least take four to eight months to take formal shape. Talking to the newsmen on Friday he said at least half of the participants have well-developed projects that can be ready for implemtation within eight months. The total maize yield in the state was 17 lakh metric tonnes, he added. It is grown in 6.5 lakh hectares in the state. Farmer, representatives of private enterprise and government officials discussed the emerging investment in the maize sector at Bihar Industries Association on November 12. Rajendra said that Tom Davenport, senior manager of International Finance Corporation of the World Bank Groupp while addressing the November 12 meet emphasized that the IFC is commited to support private investment in Bihar. Source: bihartimes.com Maize to attract investment in Bihar Click On "Full Story" For More... (281 words in story) Full Story By ugesh sarkar, Section BusinessPosted on Tue Nov 24, 2009 at 02:00:55 AM EST
ONGC, Bihar Govt Sign Petro Exploration Deal
Bihar government and Oil and Natural Gas Corporation (ONGC) today signed an agreement to carry out exploration of petroleum and natural gas in 2227 sq km area in West Champaran district.
By ugesh sarkar, Section Business
The agreement was signed by Phool Singh, Principal Secretary, state Mines and Geology department and ONGC's General Manager (Frontier Basin), N K Verma, in the presence of Tata Petrodyne Chief Financial Officer A Guha at Soochna Bhavan here. The state cabinet had approved Petroleum Exploration License (PEL) application of ONGC and Tata Petrodyne earlier this month. Official sources said the exploration work of the first phase would start this year with 2D seismic survey using latest seismic data recording system and then geochemical survey using advanced technology. "The surveys will be supplemented with gravity magnetic and Magneto-Telluric surveys in the coming years. The data generated by the surveys will be studied or interpreted on high-tech work stations with sophisticated softwares to pin point the prospective area in the block," they said. ONGC planned to make huge investment in carrying out the exploration and subsequent drilling a well up to a depth of 3500 metres. Source: Business-standard ONGC, Bihar govt sign petro exploration deal Posted on Thu Oct 29, 2009 at 10:41:08 PM EST
National Spot Exchange Wants To Sign MoU With Bihar Govt For Expansion
The National Spot Exchange (NSE) has proposed to sign an agreement with Bihar government seeking to expand its area of operation in the fields of agriculture and food processing.
NSE managing director-cum-chief executive officer Anjani Sinha called on deputy chief minister-cum-finance minister SKModi and submitted the proposals for signing the Memorandum of Understanding (MoU) with the state's agriculture and food and consumer protection departments. Sinha said the NSE is a pan India institutionalised, transparent delivery based electronic spot exchange which enables the farmers to sell farm produce directly to the processors and exporters located anywhere in India. It has been promoted by Financial Technologies India Limited and NAFED, the apex national-level farmers' cooperative, Sinha said. "NSE's objective is to reduce intermediation marketing efficiency, our pilot project, which we launched in Khagaria district's Maheshkhunt region this year has proved highly successful as the NSE was able to purchase 30mn tonnes of maize from farmers there at extremely competitive prices, thereby benefiting farmers, who didn't have to worry about how and where to sell their produce, he said. Source:www.dnaindia.com National Spot Exchange wants to sign MoU with Bihar govt for expansion Click On "Full Story" For More... (589 words in story) Full Story By ugesh sarkar, Section BusinessPosted on Mon Oct 12, 2009 at 12:04:13 AM EST
WB, IFC Advise Bihar To Focus On Big Industrial Houses
he World Bank and International Finance Corporation have advised the state government to mobilise investment from large industrial houses and big industrialists for the speedy growth of the state.
By ugesh sarkar, Section Business
" Much focus is required to be put on big industrialists and traders primarily to attain the dream of a developed state,"a joint report of the WB and IFC, said. The report was made after extensive interactions with hundreds of small, medium and big industrialists and traders, by the economists of the two global financial institutions. Small-time traders with an annual turnover of below Rs 50 lakh constitutes 81 per cent of tax-paying traders in the state, Deputy Chief Minister, who also holds finance portfolio, S K Modi Modi told PTI. The total number of such registered traders is 43,127. The revenue generation by such small-time traders was a mere 0.87 per cent of the total revenue generation of the state&aposs traders. The tax returns of this segment was also a mere Rs 30 crore a year, Modi said. Source: Indopia.in WB, IFC advise Bihar to focus on big industrial houses Posted on Wed Oct 07, 2009 at 10:10:12 PM EST
Bihar Woos Investors In Food-Processing Segment
Bihar offers a business-friendly climate and the private sector must take advantage of it by investing in the state, especially in the food processing industry, a senior Bihar Government official said.
By ugesh sarkar, Section Business
"Bihar offers immense potential for investment and there is a need for industry to participate wholeheartedly in the economic development of Bihar," Bihar Government's Principal Secretary (Industries) Ashok Kumar Sinha said here. The entrepreneurs at the same time, also need to look at new and better business opportunities, he said, Sinha was addressing a roadshow on 'Food Processing Policy of Bihar' organised here jointly by the Bihar Government and the Confederation of Indian Industry (CII) to encourage private sector investment in the state. The state has the most fertile soil in the country and ample water resources to encourage agricultural growth. With pro-active Government intervention, Bihar has witnessed an improvement in infrastructure facilities, assuring sustained growth in the state for private investors in various fields and particularly in food-processing, Sinha said. Source: Business-standard Bihar woos investors in food-processing segment Posted on Thu Oct 01, 2009 at 09:07:47 PM EST
Kaushlendra: He Wants To Make Bihar The Vegetable Capital Of India
He wants to make Bihar the vegetable capital of India. And give all--farmers, vendors, consumers--a fair deal.
 Kaushlendra, Samriddhii The Mission: Help small vegetable growers and vendors get the best price. The Benefits: About 600 farmers and 3,000 vendors are doing business with it. The seed for Kaushlendra's business idea was sown very early in his student life. Growing up in a farmer's family in Bihar's Nalanda district, Kaushlendra was troubled by two observations. One, farmers struggle to get the right value for their produce. Two, consumers in Bihar, the third-largest vegetable producing state, ironically, can't get fresh vegetables. By the time he passed out of the Indian Institute of Management (Ahmedabad) as a topper, he knew what to do. He started Samriddhii.
To know what Samriddhii's all about, consider what it does on a daily basis. As early as 5 am, five of its members from Patna start towards collection centres in rural Bihar. Waiting for them at those centres are 600 farmers, with loads of fresh vegetables. Samriddhii's members spend the next two hours picking and choosing the best vegetables on offer. Having procured 5 tonnes in all, they pay farmers in cash. Of course, buying directly from farmers is lighter on the pocket, what with middlemen fee absent. The vegetables then find their way to homes, shops, mandis and hand-driven carts in Patna. By evening, Samriddhii sells all the vegetables it procured early morning. Kaushlendra might not have got any private equity or venture capital funding till now. But the 29-year-old has done well in an area where biggies such as Reliance Fresh have failed and those like Bharti are trying to find their feet. Less than two years since it sold its first kilogram of vegetables, Samriddhii has an annual turnover of Rs 5 crore. What's more, margins are between 20% and 30%. Source: business.outlookindia.com The Fair Price Shop
The Right Price Click On "Full Story" To Read These Points.... (1033 words in story) Full Story By ugesh sarkar, Section BusinessPosted on Mon Aug 24, 2009 at 03:01:44 AM EST
Several Bihar Cos, Corporations In Red: CAG
Several state-run companies and statutory corporations in Bihar have incurred huge losses successively and are now in red, the
By ugesh sarkar, Section Business
Comptroller and Auditor General of India (CAG) said in a report. The Auditor in its report for the period ended March 31, 2008 pointed out that the state had 54 public sector undertakings-- 50 government companies and four statutory corporations. At the end of March 2007 one more government company was added, making it 55 altogether. Of the 50 government companies, 16 are working while 34 are not, it said, adding that all the four statutory corporations are functioning. In addition, there are eight companies-- two working and six non-working. None of the working government companies and statutory corporations have finalised their accounts for the year 2007-08 within the stipulated period. Further, the accounts of 16 working companies and four working statutory corporations had arrears ranging from 1-19 years as on September 30, 2008. While, the non-working companies suffered arrears for a period of 13-31 years. Quoting the latest finalised accounts, it stated six working Public Sector Units earned an aggregate profit of Rs 38.24 crore. Against this, 13 working PSUs incurred an aggregate loss of Rs 946.16 crore as per their latest finalised accounts. Source: Economic Times Several Bihar cos, corporations in red: CAG Posted on Tue Jul 14, 2009 at 11:39:47 PM EST
Patna Second Best City to Start Business: World Bank Report
 In its report titled 'Doing Business in India 2009', Patna ranked second only to New Delhi followed by Jaipur, Hyderabad, and Bhubaneshwar where entrepreneurs could start a new venture without much bureaucratic hassle or government interference. Furthermore, Patna ranked 14 out of 17 cities included in the report ahead of Chennai and Kolkata for providing an atmosphere conducive to conduct business in a metro area. The rankings were based on seven criteria including ease in starting a business, ease in obtaining building permits, property registration, paying taxes, trading across borders, enforcing contracts, and closing a business. Source: Patnadaily.com Patna Second Best City to Start Business: World Bank Report Posted on Tue Jun 30, 2009 at 11:19:38 PM EST
Bihar Joins The Elite List Of Most Preferred Investment Destination
In the last five years, the number of states with aggregate project investments of Rs 1,00,000 crore or more went up from seven to thirteen. In March 2005, Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Orissa, Tamil Nadu and West Bengal had total investments of over Rs 1,00,000 crore. By March 2007, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh and Uttar Pradesh joined the elite list.
By ugesh sarkar, Section Business
Investments in India have increased by 37.4 per cent and 29 per cent in terms of projects in 2008-09. As of March 31, 2009, there were 29,628 projects worth Rs.42,35,484 crore, according to a study on `Project Investments in India' for 2008 - 2009 conducted by ProjectsToday, an online database on project investments. The study found the services and utilities (infrastructure) sector to be the growth driver with a share of 36.1 per cent in total investments. However, holdups in execution of proposed projects pulled down the implementation ratio from 44.5 per cent in March 2008 to 42.1 per cent in March 2009. Though the private sector had shown increased interest in participating in India's infrastructure building process, the share of the public sector in this sector remained high at 71 per cent, with the bulk of its investment focused on building roads, laying railway lines and putting in place systems for providing potable water. Going forward Projects Today expects the public sector to continue its project investment activities during 2009-10 in the critical infrastructure sectors like roadways, water supply, electricity, irrigation and community services, the same cannot be vouched for the private sector, which appears to be waiting for some more concrete signs of revival. During 2008-09, the country saw announcement of 12,583 new projects involving a total investment of Rs 8,62,634 crore. Compared to 7,112 new projects worth Rs 5,78,912 crore announced in the first half of 2008-09, only 5,421 new projects worth Rs 2,83,722 crore were announced in the second half. This indicated a sharp fall of 23.8 per cent in terms of number and a whopping 51 per cent in envisaged investment. "Given this situation, the pace of project investment will remain moderate at least in the first half of 2009-10," Projects Today said. Source: Jiabihar.com Bihar joins the elite list of most preferred investment destination Posted on Fri May 01, 2009 at 12:51:23 AM EST
Bihar Industries Association (BIA) Urges Rly Enterprises To Provide Market To SMEs
In a major initiative, the Bihar Industries Association (BIA) recently at a Exhibition-cum-Buyers-Sellers' Meet here requested the railway enterprises and railway stores to extend purchase preference policy to Bihar's small and medium enterprises (SMEs) to enable them to get supply orders for different products and ancillaries needed by them.
At least 27 entrepreneurs of SMEs got themselves registered at the meet, organized by the BIA, for seeking purchase preference from the participating Integral Coach Factory (ICF), Kapurthala, Jamalpur Loco Workshop which manufacture medium size cranes, Research Designs and Standard Organisation (RDSO), Lucknow, and Railway's Controller of Stores. Industries minister Dinesh Chandra Yadav said the railway enterprises being big purchasers should provide market to the budding SMEs of the state. The Bihar industries minister also referred to the state government's efforts to help the SMEs join the mainstream of development process. Stressing on creation of market for Bihari SMEs by the railway enterprises and stores, BIA president K P Jhujhunwala said that even different state government departments have to come up with purchase preference policy to help Bihari SMEs. Source: Times Of India BIA urges rly enterprises to provide market to SMEs Click On "Full Story" For More... (410 words in story) Full Story By ugesh sarkar, Section BusinessPosted on Mon Feb 16, 2009 at 12:00:26 AM EST
Modi Inaugurates Steel Plant Near Bihta In The Patna District
A small private sector steel factory, Gangotri Iron & Steel Co (GISCO), has come up in Bihar on Sunday. It was inaugurated by deputy chief minister Sushil Kumar Modi at a function near Bihta in the Patna district. It is in Bihta that the proposed Indian Institute of Technology campus is going to be build by the Centre. Besides, Bihta has an air force base too.
By ugesh sarkar, Section Business
The steel plant will come up at Mahadeopur village in Bihta and will produce earthquake-resistant TMT bars. The unit has the capital investment of Rs 60 crore. Speaking on the occasion Modi said the industrial growth will be possible only with the help of local entrepreneurs. The plant is spread over 16 acres of land and has been approved by the State Investment Promotion Board (SIPB). Modi said this factory is a welcome move at the time of global economic slowdown. It will generate job opportunities as other ancillary units will also come up here. The production in the plant will start from January 15.
Minister for disaster management Nitish Mishra, IT minister Anil GISCO also announced that it would establish a power plant at Bihta very soon for which land was being acquired. It needs to be mentioned that the Steel Authority of India has already began work on the steel plants in West Champaran, Hajipur and Gaya districts. Source: Bihar Times Modi inaugurates steel plant in Bihta Posted on Thu Jan 15, 2009 at 02:01:32 AM EST
Bihar Industrialists, Merchants Seek Special Package From Finance Commission
Delegations of the Bihar Industries Association (BIA) and Bihar Chamber of Commerce (BCC) on Thursday submitted separate memoranda to the 13th Finance Commission seeking a special package to the state to revive its economy and enable it achieve the national GDP rate.
Patna, (Bihar Times): Delegations of the Bihar Industries Association (BIA) and Bihar Chamber of Commerce (BCC) on Thursday submitted separate memoranda to the 13th Finance Commission seeking a special package to the state to revive its economy and enable it achieve the national GDP rate. The memorandum said that "if India has to succeed, Bihar must prosper. For that to happen, the regional imbalance will have be ended through a special package." It said the package should be similar to the ones given to north-eastern states and Jammu and Kashmir so that Bihar reach the double digit GDP. The BIA delegation was led by president K P Jhujhunwala. Other members of the delegation were S N Ashraf, Sunil Kumar Singh, Ram Lal Khetan and S K Patwari. Click On "Full Story" For More... (395 words in story) Full Story By ugesh sarkar, Section BusinessPosted on Tue Dec 16, 2008 at 03:08:58 AM EST
Bata set up two world-class factories in Bihar
Thomas Bata, the patriarch of the global shoe company who died in Toronto on Monday, was passionate about India and even held the global board meeting of his group at Batanagar in West Bengal earlier this year and set up two world-class factories in Bihar.
The 93-year-old soft-spoken entrepreneur, who led the Bata Shoe Company's growth for the past seven decades, was also the man responsible for making his company household brand in India's footwear industry, recollect his friends and associates. "His passion for India had even driven him to hold the international board meet of the Bata organisation in Batanagar in Kolkata earlier this year," said P M Sinha, the non-executive chairman of Bata India. "He also visited Bihar thereafter to set up two world class factories for his group. The success of Bata in India, which has become synonymous with the Indian shoe industry, goes to him," Sinha told IANS. The two factories are at Mokamehghat and Bataganj. Bata, who often called himself a ninth-generation cobbler, set up his first factory in India at Konanagar near Kolkata in 1931 - a time when footwear was produced mainly as handicraft by micro units. Today, his shoe company in India, incorporated as Bata Shoe Company Private Limited that went public in 1973 and changed its name to Bata India Limited, is celebrating its platinum jubilee. Click on "Full Story" for more... (621 words in story) Full Story By Dr arvind, Section BusinessPosted on Tue Sep 02, 2008 at 11:11:51 PM EST
Nitish Appealed to PM Mammohan Singh To Remove The Recently-Imposed Ban On Maize Exports
Bihar Chief Minister Nitish Kumar has appealed to Prime Minister Manmohan Singh to remove the recently-imposed ban on maize exports. At 1.7 million tonnes, the state accounts for 10 per cent of the country's total maize output.
By Tiwari, Section Business
"The recent ban on export has led to depressed market conditions. The price of maize before the ban hovered around Rs 732 a quintal. Now, it has now crashed to Rs 500-600 a quintal. The procurement of maize by buyers has also come down drastically," Kumar has stated in a letter to the PM. The union government had banned maize exports on July 3 (till October 15) as an anti-inflationary measure. Inflation has been near 12 per cent for the last few weeks. "Maize in mainly produced by small farmers. For some of them, maize cultivation is the only source of livelihood. It has affected the poor farmers who were already facing the heat of price-rise on all fronts," Kumar said. He claimed that maize exports have been banned , in spite of the fact that the commodity is not a major contributor to the wholesale price index (WPI). Source: Business-standrad 31/July/2008 Posted on Thu Jul 31, 2008 at 02:28:46 AM EST
Inflation, High Interest Rates Main Worry For Corporate India...
..but a $700-billion investment pipeline over the next three years keeps confidence high; so order books and projections are upbeat
Are we facing an economic gloom? The answer is a clear "No". There are challenges ahead, but the medium- and long-term perspective of Indian corporates indicates high confidence. At a recently held CII National Council meeting in Hyderabad, a snap poll showed that 97 per cent of CEOs do not see any significant decline in their company's top-line growth. They are going ahead with their investment plans. While high interest rates and increased economic volatility do appear to be causes of concern, order books and market projections for most sectors are upbeat. Almost two-fifths of respondents do not expect industrial growth to slow more than 1 per cent, and the remaining believe the maximum decline to be less than 2 per cent. This is against the actual decline by 3 percentage points in 2007-08 over the previous year. Regarding GDP growth, 86 per cent say any deceleration would be contained at 0.5-1.5 points. Four-fifth of the respondents say they do not expect production to dip while 50 per cent do not expect any impact on their top line growth. There are several reasons to be upbeat. One, the service sector performance continues to be robust, fuelled by transport, communications and trade growth. In the transport segment, expenditure on highways expansion, ports and airports has not been affected since these are long-term investments. Two, infrastructure plans are on stream. Even though core sector growth has not been promising for the past few months, the government's intentions to spend and attract up to $500 billion in the next four-five years can itself be an incentive not to abandon production plans. CEOs have called for a special budget for infrastructure on the lines of the railway budget for kick-starting 20 national projects on a high-priority basis to boost core sector growth. Click On "Full Story" For More... (659 words in story) Full Story By Tiwari, Section BusinessPosted on Fri Jul 25, 2008 at 11:36:05 PM EST
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