6 Feb 2010
NEW DELHI: It’s the other extreme of the car market. Away from the mad rush of mass volumes and discounts, this segment thrives on the statements Mercedes E-Class pomp, power, style, speed and the hefty price tags that often range from close to a crore to a whopping Rs 6 crore. And car connoisseurs do not hesitate to write out that fat cheque which many may dismiss as splurging. So, the fight here is more for the finest style statement and the brand than the price.
Welcome to the world of luxury wheels. This is the world of Rolls Royce, Bentley, Lamborghini, Mercedes AMG, Maybach, BMW and Porsche — fancied by almost everybody but affordable only for a few, many of whom are discussed as much for their high-profile personality as for the cars they own. And while recession may have dampened spirits, the pockets are still deep enough to indulge, as is evident from the way many of these models are sold out even before they are launched.
Sample the rush. Porsche fears that it will not have enough Panamera sedans to meet the “unanticipated rush’’ in the Indian market despite the model carrying a hefty Rs 1.4-2 crore price tag. It’s the same with Mercedes that has managed as many as five confirmed bookings for the Rs 2 crore SLS-AMG within days of of its launch. Audi also says its R8 sports car beat expectations with bookings even before launch.
And it’s not just about the rush to be the early birds — they also want their cars to be customised. “It’s not a car that these people look for, it’s more of a lifestyle,’’ says Satya Bagla, whose company is the official importer of the Lamborghinis and the Bentleys to India. Bagla says that the brands he deals in cost between Rs 1.6 crore and Rs 3.5 crore. He adds that to their owners, these mean more than just cars.
“This set of customers are demand-ing, and so we offer them the option of having a high-level of customisation. The cars can have special leather, distinct wood finishes, and exclusive emblem of the owners who may spend as much as Rs 30-40 lakh to tune the cars to their needs. At most times, they end up as architects of the car,’’ he says.
Porsche, for example, has a special customisation programme under ‘Porsche Exclusive’. The German sports carmaker spoils customers for choice as one can have over 100 customisations to choose from. So, you can invent your own new colour for the car’s exteriors, or decide to have a burmester music system (that can cost up to Rs 5.5 lakh) on board, or have your initials inscribed on door sills, or even have seat belts in the same colour as the exterior.
Sunday, February 7, 2010
Thackeray calls Shah Rukh 'traitor', no apologies says actor
Mumbai: On a day when Bal Thackeray labelled him a 'traitor', Shah Rukh Khan today stuck to his comments on Pakistani players in IPL saying there was nothing 'anti- national' and ruled out meeting the Shiv Sena supremo on his own to sort out the controversy.
'I have not said anything that is anti-national or anti-Indian. I stand by what I said and I would like to say that may be the group has misunderstood me. There is no other reason because I have not said anything I should feel sorry about,' Khan, who arrived here after a whirlwind promotional tour of New York, London and Berlin, told reporters.
'I think what I said has been misconstrued. I am pro good relationship with countries. I think we all are...,' he said. Asked if he would go to Thackeray's home 'Matoshree' to explain his position, Khan said he had gone to the 'senior' leader's residence whenever he was called.
'I have been there so often. Yes, I would like to go and have drink with him. But on this matter, I don't see...there is no reason for going and asking...but if my stand needs to be explained to someone, I have already done it. I don't think there is an issue on that front,' Khan said.
In an editorial in the Sena mouthpiece, Thackeray wrote, 'A Khan named Shah Rukh tells us to love Pakistan but nobody
feels suffocated due to his treachery. Traitors, do whatever you want to do with the blessings of Congress. Sena won't stop
you...'
Theactor, however, made it clear that he did not want to join issue with Sena, describing Thackeray as an 'elderly gentleman' whose company he enjoyed. 'He (Bal Thackeray) is an elderly gentleman. He will feel bad if I react on his comments. I have met him several times. He is an artist and I enjoy his company. We had good discussions together. Uddhav is also a photographer. But we never had ideological discussions.' Khan said.
The actor, however, said he did not want to make it an issue.
'Sometimes when we get radical and we get angry we get so aggressive that we don't hear the other point of view. So in
this case may be the group has understood my point of view. I am just talking about being a simple Indian and you can't take
that away from me or any of us,' he said.
On Sena's decision not to stop the release of his upcoming film 'My Name Is Khan', the actor said he felt relieved.
'This (controversy) is not against my film. It is related to me. So I wanted that my film should be seen as a product, which is happening and I respect that and I am very happy. I am very thankful if it is true.'
Asked if the ongoing controversy was helping the film's publicity, he said, 'the film is benefiting from my acting. I don't need anything else for publicity.'
'I pray to god that the film should be released, because that is what I do. I want that everyone should go and see the film,' he added. PTI
'I have not said anything that is anti-national or anti-Indian. I stand by what I said and I would like to say that may be the group has misunderstood me. There is no other reason because I have not said anything I should feel sorry about,' Khan, who arrived here after a whirlwind promotional tour of New York, London and Berlin, told reporters.
'I think what I said has been misconstrued. I am pro good relationship with countries. I think we all are...,' he said. Asked if he would go to Thackeray's home 'Matoshree' to explain his position, Khan said he had gone to the 'senior' leader's residence whenever he was called.
'I have been there so often. Yes, I would like to go and have drink with him. But on this matter, I don't see...there is no reason for going and asking...but if my stand needs to be explained to someone, I have already done it. I don't think there is an issue on that front,' Khan said.
In an editorial in the Sena mouthpiece, Thackeray wrote, 'A Khan named Shah Rukh tells us to love Pakistan but nobody
feels suffocated due to his treachery. Traitors, do whatever you want to do with the blessings of Congress. Sena won't stop
you...'
Theactor, however, made it clear that he did not want to join issue with Sena, describing Thackeray as an 'elderly gentleman' whose company he enjoyed. 'He (Bal Thackeray) is an elderly gentleman. He will feel bad if I react on his comments. I have met him several times. He is an artist and I enjoy his company. We had good discussions together. Uddhav is also a photographer. But we never had ideological discussions.' Khan said.
The actor, however, said he did not want to make it an issue.
'Sometimes when we get radical and we get angry we get so aggressive that we don't hear the other point of view. So in
this case may be the group has understood my point of view. I am just talking about being a simple Indian and you can't take
that away from me or any of us,' he said.
On Sena's decision not to stop the release of his upcoming film 'My Name Is Khan', the actor said he felt relieved.
'This (controversy) is not against my film. It is related to me. So I wanted that my film should be seen as a product, which is happening and I respect that and I am very happy. I am very thankful if it is true.'
Asked if the ongoing controversy was helping the film's publicity, he said, 'the film is benefiting from my acting. I don't need anything else for publicity.'
'I pray to god that the film should be released, because that is what I do. I want that everyone should go and see the film,' he added. PTI
Friday, February 5, 2010
Sensex closes below 15800 mark on global cues
Feb 5, 2010
Indian stock markets sank on the worldwide fall after an unexpected increase in the US jobless claims and adding to the woes from the European nations struggling with shooting up budget deficits.
India’s key benchmark index, Sensex witnessed sharp fall in the opening session today beaching the psychological 16,000 mark. The index remained range-bound between 15,935 to 15,811 points down by over 2% from its Thursday’s close.
Metal stocks were the worst hit on the Bombay Stock Exchange (BSE) as metal prices fell on the London Metal Exchange (LME) on 4 February 2010. Index heavyweight Reliance Industries slipped below the Rs.1000 mark, however it regained shortly.
Asian shares plunged following an unexpected increase in US jobless claims and slide in commodities. The key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan were down by between 1.48% to 3.47%.
The Dow Jones Industrial Average index briefly fell below the crucial 10,000 mark, as stocks suffered their worst losses in more than nine months. Escalating sovereign debt problems in Europe and an unexpected rise in jobless claims put investors on the defensive just ahead of Friday's crucial payrolls report.
Thursday, 04 February 2010 proved hampering for the global indices including Dow Jones Industrial Average fell 268.37 points, or 2.61%, to 10,002.18. The Standard & Poor's 500 Index dropped 34.17 points, or 3.11%, to 1,063.11. The Nasdaq Composite index lost 65.48 points, or 2.99%, to 2,125.43.
US economic data on Thursday showed initial jobless claims rose by 8,000 last week to a seasonally adjusted 480,000. This is against economists' expectation of a drop of 10,000.
Meanwhile, the European Central Bank (ECB) and Bank of England (BOE) kept interest rates at record lows on Thursday as financial markets looked for guidance on growing eurozone debt problems.
Investors withdrew $516 million from Asian equities outside of Japan in the week ended 3 February 2010, the research company said in a statement. Within Asia, China equity funds reported net outflows for the fifth time in six weeks while Indian funds lost $180 million, the most in 68 weeks, according to the statement.
Following rising prices of potato and pulses, food inflation rose to 17.56% in the week ended 23 January 2010 from 17.40% in the previous week, government data released on Thursday showed. The inflation for primary articles, which include food and non-food items, marginally eased to 14.56% in the reporting week from 14.66% in the previous week. The fuel price index rose 5.88%.
India's largest private sector steel maker by capacity Tata Steel slumped 3.51% to Rs 556.90 and was the top loser from the Sensex pack. Hindalco Industries (down 2.5%), Sterlite Industries (down 1.43%), National Aluminium Company (down 3.98%), Sesa Goa (down 3.08%), and Hindustan Zinc (down 4.49%), edged lower.
Index heavyweight Reliance Industries (RIL) fell 1.31% to Rs.1006.50, after sliding to day's low of Rs.995.05. The company's net profit rose 15.77% to Rs.4008 crore on 89.77% surge in total income to Rs.57364 crore in Q3 December 2009 over Q3 December 2008. RIL said the results had been reworked and restated to include figures from Reliance Petroleum, which it absorbed last year. The company announced the Q3 result during market hours on 22 January 2010.
Indian stock markets sank on the worldwide fall after an unexpected increase in the US jobless claims and adding to the woes from the European nations struggling with shooting up budget deficits.
India’s key benchmark index, Sensex witnessed sharp fall in the opening session today beaching the psychological 16,000 mark. The index remained range-bound between 15,935 to 15,811 points down by over 2% from its Thursday’s close.
Metal stocks were the worst hit on the Bombay Stock Exchange (BSE) as metal prices fell on the London Metal Exchange (LME) on 4 February 2010. Index heavyweight Reliance Industries slipped below the Rs.1000 mark, however it regained shortly.
Asian shares plunged following an unexpected increase in US jobless claims and slide in commodities. The key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan were down by between 1.48% to 3.47%.
The Dow Jones Industrial Average index briefly fell below the crucial 10,000 mark, as stocks suffered their worst losses in more than nine months. Escalating sovereign debt problems in Europe and an unexpected rise in jobless claims put investors on the defensive just ahead of Friday's crucial payrolls report.
Thursday, 04 February 2010 proved hampering for the global indices including Dow Jones Industrial Average fell 268.37 points, or 2.61%, to 10,002.18. The Standard & Poor's 500 Index dropped 34.17 points, or 3.11%, to 1,063.11. The Nasdaq Composite index lost 65.48 points, or 2.99%, to 2,125.43.
US economic data on Thursday showed initial jobless claims rose by 8,000 last week to a seasonally adjusted 480,000. This is against economists' expectation of a drop of 10,000.
Meanwhile, the European Central Bank (ECB) and Bank of England (BOE) kept interest rates at record lows on Thursday as financial markets looked for guidance on growing eurozone debt problems.
Investors withdrew $516 million from Asian equities outside of Japan in the week ended 3 February 2010, the research company said in a statement. Within Asia, China equity funds reported net outflows for the fifth time in six weeks while Indian funds lost $180 million, the most in 68 weeks, according to the statement.
Following rising prices of potato and pulses, food inflation rose to 17.56% in the week ended 23 January 2010 from 17.40% in the previous week, government data released on Thursday showed. The inflation for primary articles, which include food and non-food items, marginally eased to 14.56% in the reporting week from 14.66% in the previous week. The fuel price index rose 5.88%.
India's largest private sector steel maker by capacity Tata Steel slumped 3.51% to Rs 556.90 and was the top loser from the Sensex pack. Hindalco Industries (down 2.5%), Sterlite Industries (down 1.43%), National Aluminium Company (down 3.98%), Sesa Goa (down 3.08%), and Hindustan Zinc (down 4.49%), edged lower.
Index heavyweight Reliance Industries (RIL) fell 1.31% to Rs.1006.50, after sliding to day's low of Rs.995.05. The company's net profit rose 15.77% to Rs.4008 crore on 89.77% surge in total income to Rs.57364 crore in Q3 December 2009 over Q3 December 2008. RIL said the results had been reworked and restated to include figures from Reliance Petroleum, which it absorbed last year. The company announced the Q3 result during market hours on 22 January 2010.
India, China have major role in revival of global economy: IMF
PTI
The International Monetary Fund has said India and China are playing a significant role in the revival of the global economy.
“When you have two relatively large economies growing at 7 and 10 per cent, respectively, India and China, they are contributing quite a lot to global growth,” IMF Deputy Director, Asia and Pacific Department, Kalpana Kochhar said during a teleconference here.
“Our forecast for global growth for next year is close to 4 per cent. I think it’s 3.9 per cent, of which advanced countries are only contributing less than two per cent. So the rest of it is in fact coming from emerging markets, and from within emerging markets, a large part from China and India,” Ms. Kochhar said.
“So it’s a significant contribution that’s coming from these two countries,” the IMF official said in response to a question.
In response to a question, Ms. Kochhar said the Indian rupee is broadly in line with fundamentals.
“We have a number of ways in which we look at whether the value of any currency, including the rupee, is in line with what we call fundamentals. Our assessment in the case of the Indian rupee is that it is broadly in line with fundamentals,” she said.
“Our assessment actually hasn’t changed in a couple of years that this is the case, and we believe this is because of the policy of the RBI to allow the exchange rate to float and to move in both directions in line with market forces,” Ms. Kochhar said.
IMF Division Chief, Asia and Pacific Department, Laura Papi said India is not the only country facing large capital inflows. “A lot of emerging markets are facing that situation.
Actually India itself has faced that situation a couple of years ago, and the authorities have handled it well.”
Of course, with the floating currency, it would mean that the currency could appreciate in response to inflows. If the inflows were to be seen as contributing to asset price bubbles, the RBI in the past also employed some prudential measures. That could be also employed, Ms. Papi said.
“There is also quite a healthy outflow out of India for, mainly for FDI purposes, which would reduce the pressure on the currency.
“In the past, the central bank has also used its policy on external commercial borrowing in response to capital inflows. So we feel that the authorities have a good mix of tools that could be employed if capital inflows surge very significantly,” the IMF official said.
The International Monetary Fund has said India and China are playing a significant role in the revival of the global economy.
“When you have two relatively large economies growing at 7 and 10 per cent, respectively, India and China, they are contributing quite a lot to global growth,” IMF Deputy Director, Asia and Pacific Department, Kalpana Kochhar said during a teleconference here.
“Our forecast for global growth for next year is close to 4 per cent. I think it’s 3.9 per cent, of which advanced countries are only contributing less than two per cent. So the rest of it is in fact coming from emerging markets, and from within emerging markets, a large part from China and India,” Ms. Kochhar said.
“So it’s a significant contribution that’s coming from these two countries,” the IMF official said in response to a question.
In response to a question, Ms. Kochhar said the Indian rupee is broadly in line with fundamentals.
“We have a number of ways in which we look at whether the value of any currency, including the rupee, is in line with what we call fundamentals. Our assessment in the case of the Indian rupee is that it is broadly in line with fundamentals,” she said.
“Our assessment actually hasn’t changed in a couple of years that this is the case, and we believe this is because of the policy of the RBI to allow the exchange rate to float and to move in both directions in line with market forces,” Ms. Kochhar said.
IMF Division Chief, Asia and Pacific Department, Laura Papi said India is not the only country facing large capital inflows. “A lot of emerging markets are facing that situation.
Actually India itself has faced that situation a couple of years ago, and the authorities have handled it well.”
Of course, with the floating currency, it would mean that the currency could appreciate in response to inflows. If the inflows were to be seen as contributing to asset price bubbles, the RBI in the past also employed some prudential measures. That could be also employed, Ms. Papi said.
“There is also quite a healthy outflow out of India for, mainly for FDI purposes, which would reduce the pressure on the currency.
“In the past, the central bank has also used its policy on external commercial borrowing in response to capital inflows. So we feel that the authorities have a good mix of tools that could be employed if capital inflows surge very significantly,” the IMF official said.
PVR, Inox among 550 screens roped in for IPL
5 Feb 2010, ET Bureau
NEW DELHI: Get ready to watch live matches of the third edition of Indian Premier League(IPL) on the big screen. Digital distribution company UFO Moviez has stuck strategic alliances with multiplex operators such as PVR, Inox, Fame and Cinemax, besides several single screen theatres, to showcase the T20 tournament across 550 screens.
"Before the IPL’s third season begins we hope to expand these alliances to about 1,000 screens. We will also create a stadium like experience at these cinemas with cheerleaders, music and IPL merchandise stalls," said Kapil Agarwal, joint managing director UFO Moviez India.
He added that for consumers the ticket prices for these matches will be comparable to the weekend movie tickets, which typically has a premium of upto 50% to the weekday price of around Rs 100-150 . The ticket for the semi-final and final matches will be sold at a higher price.
UFO Moviez is offering matches on revenue share arrangements per match as well as in packages of 10-30 matches to theater and multiplex owners.
The company is in talks with brands to advertise on-air at the beginning and the end of a match and during strategy breaks. In addition, UFO Moviez would tap local sponsors to advertise at the cinemas screening IPL matches and expects to rake in Rs 40-50 crore through ticket sales and advertising in the first year.
Box office collections were hit during the first two seasons of IPL with no big movies being released at that time. UFO Moviez believes IPL matches screening offers an alternate revenue stream for cinema owners.
Late last year, Entertainment and Sports Direct , an arm of private equity group Dar Capital had bagged the global theatrical rights of IPL till 2019 for Rs 330 crore.
It had then assigned the Indian theatrical rights to Crown Infotainment which is owned by a group of Indian businessmen. UFO Moviez is a sister company of Crown Infotainment.
NEW DELHI: Get ready to watch live matches of the third edition of Indian Premier League(IPL) on the big screen. Digital distribution company UFO Moviez has stuck strategic alliances with multiplex operators such as PVR, Inox, Fame and Cinemax, besides several single screen theatres, to showcase the T20 tournament across 550 screens.
"Before the IPL’s third season begins we hope to expand these alliances to about 1,000 screens. We will also create a stadium like experience at these cinemas with cheerleaders, music and IPL merchandise stalls," said Kapil Agarwal, joint managing director UFO Moviez India.
He added that for consumers the ticket prices for these matches will be comparable to the weekend movie tickets, which typically has a premium of upto 50% to the weekday price of around Rs 100-150 . The ticket for the semi-final and final matches will be sold at a higher price.
UFO Moviez is offering matches on revenue share arrangements per match as well as in packages of 10-30 matches to theater and multiplex owners.
The company is in talks with brands to advertise on-air at the beginning and the end of a match and during strategy breaks. In addition, UFO Moviez would tap local sponsors to advertise at the cinemas screening IPL matches and expects to rake in Rs 40-50 crore through ticket sales and advertising in the first year.
Box office collections were hit during the first two seasons of IPL with no big movies being released at that time. UFO Moviez believes IPL matches screening offers an alternate revenue stream for cinema owners.
Late last year, Entertainment and Sports Direct , an arm of private equity group Dar Capital had bagged the global theatrical rights of IPL till 2019 for Rs 330 crore.
It had then assigned the Indian theatrical rights to Crown Infotainment which is owned by a group of Indian businessmen. UFO Moviez is a sister company of Crown Infotainment.
Diamond-studded flat in Chennai for Rs 8 cr
Jan 2010
CHENNAI: A city-based builder is all set to promote Chennai’s costliest apartment project, where each flat will be priced at Rs 8 crore and have a foyer studded with diamonds, precious stones and pearls.
Christened The Art, the project derives its theme from the cubist paintings of the legendary Pablo Picasso. A limited-edition super luxury residential complex, it is being promoted by Vijay Shanthi Builders on Kothari Road in the heart of Nungambakkam.
The previous record for the most expensive residential apartment in the city was one promoted by Kgeyes developers in the posh Poes Garden at Rs 7.46 crore per unit in 2007. PepsiCo CEO Indira Nooyi had bought one of the four flats in the project, which is located in the area where AIADMK leader Jayalalitha and actor Rajnikanth have their residences.
The latest project has an opulent style, which is unusual even by the standards of high-end apartments. The marble floor of the foyer in every flat will be engraved with a peacock, studded with precious stones.
Suresh Kumar, MD of the Vijay Shanthi group, told TOI: ‘‘Our aim is to create homes that are unique, luxurious and provide value for money. It is meant only for those who want to make a statement of luxury in impeccable style.’’ Mumbai-based BNK Associates is the architect of the complex, which has only 21 apartments in three blocks, with each flat measuring roughly 5,300 sq ft.
The builder had bought the 22-ground (each ground is 2,400 sq ft) plot at the peak of the real estate boom two years ago for Rs 71.5 crore.
CHENNAI: A city-based builder is all set to promote Chennai’s costliest apartment project, where each flat will be priced at Rs 8 crore and have a foyer studded with diamonds, precious stones and pearls.
Christened The Art, the project derives its theme from the cubist paintings of the legendary Pablo Picasso. A limited-edition super luxury residential complex, it is being promoted by Vijay Shanthi Builders on Kothari Road in the heart of Nungambakkam.
The previous record for the most expensive residential apartment in the city was one promoted by Kgeyes developers in the posh Poes Garden at Rs 7.46 crore per unit in 2007. PepsiCo CEO Indira Nooyi had bought one of the four flats in the project, which is located in the area where AIADMK leader Jayalalitha and actor Rajnikanth have their residences.
The latest project has an opulent style, which is unusual even by the standards of high-end apartments. The marble floor of the foyer in every flat will be engraved with a peacock, studded with precious stones.
Suresh Kumar, MD of the Vijay Shanthi group, told TOI: ‘‘Our aim is to create homes that are unique, luxurious and provide value for money. It is meant only for those who want to make a statement of luxury in impeccable style.’’ Mumbai-based BNK Associates is the architect of the complex, which has only 21 apartments in three blocks, with each flat measuring roughly 5,300 sq ft.
The builder had bought the 22-ground (each ground is 2,400 sq ft) plot at the peak of the real estate boom two years ago for Rs 71.5 crore.
Saturday, January 30, 2010
Dr.A.P.J.Abdul Kalam on Social Responsibility of institutions
Do well by doing good
I am delighted to participate in the 23rd Annual Day Celebration of Geojit BNP Paribas Financial Services
I would like to talk on the topic “Social Responsibility of Institutions”. Let me first talk about the current ambience in India in a global environment of economic turbulence.
Current Ambience
Indian economy was growing at an average of 9% per annum till the last year. Now this year, Indian economy has got affected due to global economic turbulence, nevertheless it will grow at 6.5% in 2009 as expected by the Reserve Bank of India. I was asking myself, what type of innovation is needed to enrich the Indian economy and other world economies in the present circumstances. I had discussions, on this subject,with many experts. It came to light that the Indian economy will be less affected due to the world financial crisis. This is due to (i) The liberalization process in India has its checks and balances consistent with the unique social requirements of the country. (ii) The Indian banking system has always been conservative which has prevented the crisis (iii) The Indian psyche is generally savings oriented and living within means is part of the mind set. These three causes have r educed the effect of global turbulence in the Indian economy. However, there is reduction in export and reduction in outsourcing. The drop in annual growth rate of GDP is around 2.5%. In fact, as we approach 2010, the Indian economy is once again showing strong signals. CII recently has reported that the industrial production has risen considerably with increase in business confidence, along with the return of stabilized financial markets and capital inflows, all indicative of upside prospects. The industry grew 9.1% in September 2009. Sectors like automobile, cement and financial services are all posting significant recoveries since the second quarter of 2009.
This is the time innovation has to be encouraged in our thinking to rejuvenate in particular agricultural and rural sector through value addition, the small and medium scale industries and enterprises for making higher levels of contribution to the GDP. I foresee possibilities of creating new markets through rural potential and employment, giving rise to interesting possibilities of Public-Private-citizen partnerships and international partnerships. Right type of financial institution will become an accelerator of economic development.
India’s performance in IT sector, Pharma, small scale industries and the infrastructure has brought a new dimension to the Indian economy. With its credible legal framework in place, robust banking system, dynamic financial system, its skilled manpower and dynamic 540 million youth force India has become an attractive proposition for the world order.
At the domestic level, India is focusing on bringing sustainable development through rural and urban infrastructure, quality education, healthcare, environmental up-gradation, bringing vibrancy in the public institutions for better and enhanced delivery of essential public services on time, reforming the financial system for better global integration and a proactive regulatory system. It is critical to the success of India becoming a Global player. Six decades of democratic vibrancy in providing leadership to the nation gives confidence to manage the socio-economic turbulences and providing the leadership to the one billion people in a democratic, multicultural, multi-linguistic and multi-religious environment.
I am delighted to participate in the 23rd Annual Day Celebration of Geojit BNP Paribas Financial Services
I would like to talk on the topic “Social Responsibility of Institutions”. Let me first talk about the current ambience in India in a global environment of economic turbulence.
Current Ambience
Indian economy was growing at an average of 9% per annum till the last year. Now this year, Indian economy has got affected due to global economic turbulence, nevertheless it will grow at 6.5% in 2009 as expected by the Reserve Bank of India. I was asking myself, what type of innovation is needed to enrich the Indian economy and other world economies in the present circumstances. I had discussions, on this subject,with many experts. It came to light that the Indian economy will be less affected due to the world financial crisis. This is due to (i) The liberalization process in India has its checks and balances consistent with the unique social requirements of the country. (ii) The Indian banking system has always been conservative which has prevented the crisis (iii) The Indian psyche is generally savings oriented and living within means is part of the mind set. These three causes have r educed the effect of global turbulence in the Indian economy. However, there is reduction in export and reduction in outsourcing. The drop in annual growth rate of GDP is around 2.5%. In fact, as we approach 2010, the Indian economy is once again showing strong signals. CII recently has reported that the industrial production has risen considerably with increase in business confidence, along with the return of stabilized financial markets and capital inflows, all indicative of upside prospects. The industry grew 9.1% in September 2009. Sectors like automobile, cement and financial services are all posting significant recoveries since the second quarter of 2009.
This is the time innovation has to be encouraged in our thinking to rejuvenate in particular agricultural and rural sector through value addition, the small and medium scale industries and enterprises for making higher levels of contribution to the GDP. I foresee possibilities of creating new markets through rural potential and employment, giving rise to interesting possibilities of Public-Private-citizen partnerships and international partnerships. Right type of financial institution will become an accelerator of economic development.
India’s performance in IT sector, Pharma, small scale industries and the infrastructure has brought a new dimension to the Indian economy. With its credible legal framework in place, robust banking system, dynamic financial system, its skilled manpower and dynamic 540 million youth force India has become an attractive proposition for the world order.
At the domestic level, India is focusing on bringing sustainable development through rural and urban infrastructure, quality education, healthcare, environmental up-gradation, bringing vibrancy in the public institutions for better and enhanced delivery of essential public services on time, reforming the financial system for better global integration and a proactive regulatory system. It is critical to the success of India becoming a Global player. Six decades of democratic vibrancy in providing leadership to the nation gives confidence to manage the socio-economic turbulences and providing the leadership to the one billion people in a democratic, multicultural, multi-linguistic and multi-religious environment.
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