— A Monthly Economic Newsletter
Embassy of India, Copenhagen
Vol. 5. No. 3
March 15, 2004
UN Report Applauds India’s Economic Reform Model
Venture Funding in India Rising Steeply
India’s Forex Reserves Surge by nearly US$ 900 Million
ADB to Invest US$ 1.7 Billion in Indian Public Sector Projects
Indian Exports Continue to Follow Double Digit Path
Taiwanese Firms Eyeing India’s Growing PC Market
India Seen Attracting More Dairy Co-Operatives
Denmark Bullish about Indian
Economy & IT Sector
During the past few days, a series of positive articles on the Indian economy in general and the IT sector in particular have appeared in the Danish press. In a major article titled ‘India - A New Tiger’, the leading Danish daily Berlingske Tidende’ mentions “in India, most arrows are pointing in an upward direction. Economy is improving. Optimism is rising. Foreign investments are booming. Highways, ports, and railways are being constructed at express speed….. This is a nation placing itself in the fast lane in an attempt to become an economic super power while competing with China, Japan, and the USA”. In a separate article titled ‘India’s Era’, Berlingske Tidende writes “in a record time, India has left behind its status as a third-world nation and entered the global economy in the most spectacular way” and “by 2032, India’s economy will overtake that of Japan”.
Danish Investments in Indian Shares Successfully Launched
Bankinvest’s newly established investment funds focusing solely on Indian and Chinese shares have received an overwhelming response from Danish investors. More than 18,000 Bankinvest customers have consequently invested a total of Danish Kroner 1,083 Million or approx. US$ 180 Million in these funds, that on a long-term basis are expected to yield attractive profits.
BankInvest identified five major Indian companies - RelianceIndustries, Infosys, Ranbaxy, Bajaj Auto, and the State Bank of India - as potential companies in which investments by Danish individuals could be encouraged.
These Indian companies were mentioned along with 5 Chinese companies, China Mobile, Skyworth Digital, Yue Yuen, People’s Food, & AviChina Industry & Technology.
Chr. Hansen Opens New Sales
Office in India
Danish food ingredients major Christian Hansen A/S has announced its major entry into India by setting up a wholly-owned subsidiary in Mumbai. The Danish company is aiming at becoming the leading supplier to Indian foodstuffs producers with initial focus on India’s dairy sector.
Chr. Hansen is already involved in a joint venture with the Cochin-based firm Akay Flavour & Aromatics.
Indian Bio-tech Company opens
office in Copenhagen
Avesthagen, one of India’s leading biotech companies, has opened an office in Copenhagen. According to Copenhagen Capacity, Avesthagen’s Danish subsidiary has signed the first co-operation agreement with a Danish bio-tech company on developing a new pharmaceutical.
The Indian bio-tech company believes that several other Indian companies will follow in its footsteps, as Copenhagen has a high concentration of bio-tech and pharmaceutical companies.
April – December 2003
(All Figures in DKK Million)
Azim Premji Visits Copenhagen
Chief of Bangalore-based software giant, WIPRO, Mr. Azim Premji, the richest man in India and ranked 17th amongs Fortune magazine’s list of the 25 most powerful business leaders outside the US, was on a visit to Copenhagen last month. The WIPRO chief struck a deal with the Danish IT Factory, appointing the Danish company as a sales office for WIPRO for the Scandinavian region.
ECONOMY, TRADE, & INVESTMENTS
UN Report Applauds India’s Economic
Members of a UN Commission on private sector development have commended the model of economic reforms followed by India, which has led to multi- national corporations becoming instruments of development along with domestic industries and entrepreneurs. India is thus said to have been very successful in achieving rapid growth and overcoming poverty during the past 20 years.
The Commission, convened by UN Secretary General Mr. Kofi Annan and co-chaired by the Canadian Prime Minister, Mr. Paul Martin and the Director of Yale University’s Centre for Study of Globalization, stressed the need for developing local entrepreneurship and introducing necessary changes in local laws, thereby making foreign investors comfortable.
Venture Funding in India Rising Steeply
Venture capital (VC) investment in India rose by 31% to US$ 774 Million in the calendar year 2003 and is set to exceed US$ 1 Billion in CY 2004 according to the Chairman of the Indian Venture Capital Association.
Indian software firms and those running call centres and back-office services over high-speed telecoms grabbed the lion’s share of venture capital funding last year. However, VC is now increasingly being invested in late stage funding of India’s banking, pharmaceutical and retail businesses.
ADB to Invest US$ 1.7 Billion in Indian
Public Sector Projects
The Asian Development Bank (ADB) is looking at making investments to the tune of US$ 1.7 Billion in Indian public sector projects in the current calendar year. The multilateral agency is also considering making additional investments in the country’s private sector through both debt and equity in infrastructure and housing finance projects.
Forex Reserves Surge by nearly
US$ 900 Million
India’s foreign exchange reserves have increased by US$ 899 Million to reach a total value of US$ 107.506 Billion. Of this, gold reserves remained steady at US$ 4.289 Billion. The increase in reserves is mainly ascribed to the absorption of dollar supplies by the Central Bank.
Indian Exports Continue to Follow
Double Digit Path
During the 10-month period April 2003-January 2004 India’s exports exceeded US$ 47.5 Billion, which is a 12.8% increase over the level of US$ 42.1 Billion recorded during April 2002-January 2003. India’s imports during April 2003-January 2004 are valued at US$ 61.9 Billion representing a 24.7% increase over the level of imports registered during the period April 2002-January 2003.
India-China Trade Figures Touch a Record
US$ 7.6 Billion
In the calendar year 2003, India-China bilateral trade figures also reached an all-time high of US$ 7.6 Billion, up 53.6% over the previous calendar year.
Taiwanese Firms Eyeing India’s
Growing PC Market
With the personal computer (PC) market in India projected to touch 10 Million units a year by 2008, leading Taiwanese computer makers are drawing up plans for India.
Companies like ACI, Kobian, and Esys are consequently surveying the Indian market to identify business possibilities there.
The latest Taiwanese company to enter the Indian computer market is BenQ - with its array of mobile phones and notebook computers.
India to Become Second-Largest Telecom Market in 5 Years
According to a study released by Ernst & Young, the Indian telecom market will become the second-largest market in the world after China in the next five years. Indian telecom operators would consequently witness almost a three-fold jump in revenues - from US$ 9 Billion to US$ 25 Billion.
New Indian Satellite Launched
The Indian Space Research Organisation (ISRO) recently launched the country’s third “remote sensory” satellite—the first dedicated purely to geographical mapping. It will joint the eleven other Indian satellites already in orbit.
BIOTECH / PHARMA SECTOR
Ranbaxy Gets Tentative Approval to Market Quinapril Hydrochloride Tablets
Ranbaxy Laboratories Ltd. has received tentative approval from the U.S. Food & Drug Administration (FDA), Office of Generic Drugs, to manufacture and market quinapril hydrochloride tablets - 5, 10, 20, & 40 mg (base). Quinapril hydrochloride is indicated for the treatment of hypertension and for the management of heart failure as adjunctive therapy when added to conventional therapy.
Ranbaxy Pharmaceuticals Inc. (‘RPI’) based in Jacksonville, Florida is the wholly-owned subsidiary of Ranbaxy, India’s largest pharmaceutical company engaged in the sale and distribution of generic and branded prescription products in the U.S. healthcare system.
India Seen Drawing More Dairy Co-ops
Keeping the Danish food ingredients company Chr. Hansen’s recent entry into India in mind, India - the largest producer of milk in the world - may emerge as the most attractive destination for foreign milk co-operatives and MNCs. Dutch co-operative majors like the FCDF and Campina have the necessary capital base and production capability to enter the Indian market. Rabo Bank’s global executive for food- & agri-business, Mr. Adrie Zwanenberg has likewise declared that India was not just a huge market, but also offered the potential to become the dairy hub of Asia.
ONGC to Study Strategic Oil Reserves
The Government of India has requested the Oil & Natural Gas Corporation of India (ONGC) to undertake a feasibility study for creating strategic oil reserves as an insurance against supply disruptions.
India, which imports 70% of its crude oil demand, plans to build 45-days strategic oil reserves over the next 3-5 years to protect domestic energy security in the event of war, and to safeguard the Indian economy from oil price shocks caused by the volatility in international oil prices.
US Energy Dept. to Assist in Introducing
Hydrogen-Powered Automobiles in India
The United States Department of Energy (USDOE) will introduce three-wheeled, hydrogen-powered experimental vehicles in India through a joint project as a possible alternative to small vehicles commonly used in densely populated cities. In a public-private partnership also supported by the US Agency for International Development (USAID), US companies specializing in the conversion of engines to hydrogen power will modify three-wheeled vehicles provided by the Indian auto manufacturer Mahindra & Mahindra Ltd. The project has the potential to encourage wide-scale conversion to hydrogen power.
Electronics & Information Technology Exposition
(April 26th-27th 2004)
Venue: India Habitat Centre, New Delhi
‘Technology Vision: India in 2010’
Department of Information Technology
Government of India
Dr. R.G. Gupta, Director
Phone: 00 91 11 24 36 30 95
Fax : 00 91 11 24 36 54 04
6th International Infrastructure Summit & Expo
(October 25th-28th 2004)
Telecom, Power, & Construction
Contact Executive: Dr. Indra Mohan,
President & Director General
Phone: 00 91 22 26 60 55 50
Fax : 00 91 22 26 60 39 92
E-Mail: email@example.com /
BROADCAST INDIA 2004 EXHIBITION
(October 28th-30th 2004)
Venue: World Trade Centre, Mumbai
Covering all aspects of TV, Radio, Video, Film, Music, Satellite, Multimedia, Computer Graphics
Organizers: Saicom Trade Fairs & Exhibitions Pvt. Ltd.
148, Admiralty House, Colaba, Mumbai-400005
Phone: 00 91 22 22 15 13 96
Fax : 00 91 22 22 15 12 69
INDIA CHEM 2004
3rd International Exhibition & Conference on Chemicals, Petrochemicals, & Pharmaceuticals
(November 3rd - 5th 2004)
Venue: NSE Complex, Goregaon, Mumbai
Organizers: FICCI (Federation of Indian Chambers of Commerce & Industry)
Federation House, Tansen Marg, New Delhi-110001
Phone: 00 91 11 23 73 87 60
Fax : 00 91 11 23 32 07 14
Published by Embassy of India, Copenhagen, 15, Vangehusvej, 2100 Copenhagen Tel: 39290854 Fax: 39270218 Email: firstname.lastname@example.org
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