- 100% FDI allowed in Defense sector for modern and state of the art technology on case to case basis.
- IKEA announced the opening of its first store in India, plans to open a Manufacturing unit in India.
- US President Barack Obama supports India’s membership to the NSG group
According to IMF World Economic Outlook, Indian economy is expected to grow at 7-7.75 per cent during FY 2016-17 despite the slow in the global market. The Indian economy is growing by more than seven per cent for the third successive year 2016-17 and can start growing at eight per cent or more in next two years. Foreign direct investment (FDI) in India has increased by 40 per cent in April-December 2015 reaching USD 29.44 billion. The steps taken by the government in recent times have shown positive results as India’s gross domestic product (GDP) at factor cost at constant (2011-12) prices 2015-16 is INR 113.5 trillion (USD 1.668 trillion), registering a growth rate of 7.6 per cent.
The economic activities which witnessed significant growth were ‘financing, insurance, real estate and business services’ at 11.5 per cent and ‘trade, hotels, transport, communication services’ at 10.7 per cent. The Indian handicraft industry is a USD 100 billion industry, and one of the major source of income and employment in rural India and this industry is growing at 20 % on a YoY basis.
Stories around business
- Adani Power has planned to invest INR 10,000 crore to set up 1 million-ton copper plant in Mundra, Gujrat.
- Amazon chief Jeff Bezos has announced to add nearly INR 20,000 crore to its India business.
Stories from around India
E-commerce sales are 1 % of total retail sales, are expected to reach to 1.5 % by 2018
India is now power surplus – Piyush Goyal Minister of State with Independent Charge for Power, Coal, New and Renewable Energy.
Office’s/partner’s achievements of the month
Market Insight Consultants celebrated the following:
14th founder’s day on 6th June 2016. Engagement as Knowledge partner of IEIA (Indian Exhibition Industry Association), wrote the White paper for Open seminar in Bangalore which was also published in Economic Times Newspaper. Technical agency in KVIC for cluster development in handicraft domain. Successful completion of first round of passenger satisfaction survey covering more 17000 passengers at 53 airports under Airport Authority of India, the Ministry of Civil Aviation body, responsible for creating, upgrading, maintaining and managing civil aviation infrastructure in India
A new and unique offering of your office i.e. changes of laws in your jurisdiction, etc.
Market Insight consultants has stepped-up it’s engagement in Skill development in social sector by opening its various centers in and around Delhi/NCR, to provide skilling to the people from rural India.
India has jumped 13 positions from last year to rank second among 30 developing countries this year on ease of doing business, according to Global Retail Development Index study.
India being rich and abundant in natural resources, is expected to outgrow China in the next 5 years. The second biggest smart phone manufacturer (Micromax), in the world’s third biggest market shifted all of its production from China to India. The average labor cost in India is 0.92 USD which is 3 times less than China (Source: Bloomberg BusinessWeek– India vs China: The Battle for Global Manufacturing)
The government has permitted 100% FDI in e-commerce retailing to promote investment in India. Increasing number of PTAs, FTAs with various countries.
The government is enforcing faster construction for various projects by giving bonus for projects that are completed before time, levying fine for projects that are delayed.
The government has announced to set up 25 new airports by either building new airports/ reviving old strips, thus increasing the air connectivity in India, Furth more the Airports Authority of India (AAI), has announce that they have plans for a total of 50 airports in the next 10 years, AAI also has promised that the airfares from these airports shall be at subsidized rates, making India one of the few developing countries to have the number of airports in 3 digits.
Written By : Sunil Raina, For ADAM Global’s Noida office