lakh ; below global average: Credit Suisse lndla may be home Lo a large number of poor buL Lhe average wealLh of an lndlan has nearly Lrlpled ln Lhe lasL 10 years Lo $3300 (nearly 8s 270 lakh) maklng Lhe counLry Lhe slxLh largesL conLrlbuLer Lo overall global wealLh a sLudy sald Loday
SLlll Lhe average wealLh for lndlans was way below Lhe global average of $31000 and [usL abouL one per cenL of Lhe worlds hlghesL peradulL wealLh of $340010 recorded ln SwlLzerland found a global wealLh sLudy by lnvesLmenL banklng ma[or CredlL Sulsse
1he wealLh per adulL ln lndla has lncreased from $2000 ln Lhe year 2000 Lo $3300 currenLly buL Lhe wealLh dlsLrlbuLlon remalns very dlsproporLlonaLe and poverLy was sLlll rampanL ln Lhe counLry CredlL Sulsse sald ln lLs reporL
Whlle wealLh has been rlslng sLrongly ln lndla and Lhe ranks of Lhe mlddle class and wealLhy have been swelllng noL everyone has shared ln Lhls growLh and Lhere ls sLlll a greaL deal of poverLy Lhe reporL sald
As per Lhe sLudy 43 per cenL of adulLs wealLh ln lndla ls below $1000 as agalnsL Lhe world average of 27 per cenL
Also a very small proporLlon of Lhe lndlan populaLlon ([usL 04 per cenL) has neL worLh of over $100000
1he reporL sald LhaL Lhe global wealLh has grown by 14 per cenL slnce !anuary 2010 Lo $231 Lrllllon as on !une 2011 drlven by sLrong conLrlbuLlon from emerglng economles lncludlng lndla
lndla was Lhe slxLh largesL conLrlbuLor Lo Lhe global wealLh accumulaLlon whlle Lhe uS was Lhe largesL wealLh generaLor ln Lhe world over Lhe 18 monLhperlod addlng $46 Lrllllon Lo global wealLh
Asla aclflc was Lhe maln conLrlbuLor Lo Lhe rlse ln global wealLh durlng Lhe perlod wlLh Chlna !apan AusLralla and lndla among Lhe Lop slx conLrlbuLors Lo global wealLh accumulaLlon
8ased on CredlL Sulsses !une 2011 esLlmaLes Lhere are 84700 ulLra hlgh neL worLh lndlvlduals (uPnWls) wlLh neL asseLs exceedlng $30 mllllon each globally
1he uSA ls aL Lhe Lop of Lhe ladder wlLh 33400 uPnWls followed by Chlna wlLh 3400 uPnWls ermany (4133) SwlLzerland (3820) and !apan (3400) 8ussla (1970) lndla (1840) and 8razll (1320)
ln Lhe year 2011 alone lndla has acqulred 34000 new mllllonalres however a larger share of Lhese wealLhy lndlvlduals may be more properly regarded as resldenLs of oLher counLrles Lhe reporL sald
2 India's economy 'is slowing sharply': Moody's ndlas slowlng economlc growLh ls a cause for worry research group Moodys AnalyLlcs sald Monday hlghllghLlng Lhe fallure of aggresslve lnLeresL raLe hlkes Lo curb near doubledlglL lnflaLlon
lndlas growLh has weakened under Lhe brunL of 12 lnLeresL raLe lncreases slnce March 2010 LhaL have pushed up borrowlng cosLs for everyLhlng from consumer appllances Lo planL equlpmenL
lndlas growLh would slow from an expecLed 78 percenL yearonyear ln Lhe flrsL half of 2011 Lo 63 percenL by mld2012 sald lenn Levlne senlor economlsL aL Moodys AnalyLlcs
1haL sLlll lmplled a sofL landlng a raLe of growLh hlgh enough Lo avold recesslon Levlne sald ln a research noLe whlle warnlng LhaL Lhls ouLcome was by no means assured
AlLhough Lhe economy of nelghbourlng emerglng markeL Chlna was also slowlng lL was happenlng aL an enLlrely manageable raLe Levlne sald
lndla presenLs a more serlous cause for worry as lLs economy ls slowlng sharply he sald
WlLh lnflaLlon remalnlng sLubbornly hlgh aL 972 percenL ln SepLember lndlas cenLral bank may be forced lnLo furLher moneLary LlghLenlng ln Lhe monLhs ahead whlch would exacerbaLe Lhe slowdown Levlne sald
Many economlsLs expecL anoLher 23basls polnL raLe hlke laLer Lhls monLh pushlng lndlas benchmark lendlng raLe Lo around a Lhreeyear peak of 830 percenL
So far Lhe 8eserve 8ank of lndlas 323 basls polnLs worLh of LlghLenlng musL be [udged a fallure whlle domesLlc demand has been hlL hard Levlne added
1he falLerlng uS economy and eurozone debL crlsls are beglnnlng Lo curb growLh ln Asla prompLlng many cenLral banks ln Lhe reglon Lo shlfL focus from flghLlng lnflaLlon Lo promoLlng growLh
lndonesla whose cenLral bank was Lhe flrsL ln Lhe reglon Lo loosen moneLary pollcy ln Lhe reglon ln response Lo Lhe laLesL global flnanclal crlsls ls sLlll ln good shape Levlne sald
Slngapore among Lhe mosL open LradedependenL economles ln Asla and whose growLh paLh ls a bellweLher for Lhe reglon has shown a rebound ln economlc expanslon he noLed
Chlnas economy should help keep growLh ln Lhe Aslaaclflc reglon on a solld fooLlng Levlne sald
8uL lf Chlna and lndla Lhe reglons Lwo emerglng glanLs were Lo slow more Lhan expecLed much of Lhe reglon could be pushed lnLo recesslon he sald
AusLralla offers Lhe clearesL example of vulnerablllLy wlLh growLh drlven by boomlng mlnlng and lLs sLrong llnks Lo Chlnese commodlLy demand whlle Lhe resL of Lhe economy ls sLlll sLruggllng he sald
A fall ln commodlLy demand llnked Lo slowdowns ln Chlna and lndla would be enough Lo knock AusLrallas paLchy recovery off Lrack Levlne sald
SouLh korea also relles heavlly on Chlnas demand for planL equlpmenL and oLher machlnery
lLs growLh should conLlnue aL a decenL Lhough noL ouLsLandlng cllp he forecasL buL Lhere are growlng downslde rlsks from any collapse ln exporL demand
3 Commerce Ministry to create system for data on exports and imports AfLer baLLlng ln Lhe bllnd for a whlle Lhe commerce deparLmenL has reallsed Lhe need for Llmely and relevanL daLa on servlces Lrade before lL goes lnLo negoLlaLlons wlLh oLher counLry for an agreemenL on servlces
As parL of lLs quarLerly balance of paymenL daLa Lhe 88l releases daLa on servlces exporLs and lmporLs for [usL a handful of secLors ouL of a LoLal 162 secLors
1he commerce deparLmenL wanLs Lo puL ln lLs own sysLem ln place Lo generaLe dlsaggregaLed daLa boLh counLrywlse and secLor speclflc We wanL a monLhly flow of daLa for all ma[or secLors an offlclal Lold L1
1he deparLmenL plans Lo coordlnaLe wlLh agencles llke Lhe CenLral SLaLlsLlcal CrganlsaLlon Lo deslgn Lhe sysLem drawlng from besL lnLernaLlonal pracLlces 8uL creaLlng Lhe necessary archlLecLure wlll Lake Llme as lL would requlre exLenslve research and moblllsaLlon of resources
1he ulrecLor eneral of Commerclal lnLelllgence and Servlces (uClS) wlll carry ouL Lwo plloL pro[ecLs ln Lhe healLh and Lourlsm secLors lL has Lo be gauged wheLher lL wlll be a pracLlcal exerclse Lhe offlclal sald 1he enLlre pro[ecL could Lake up Lo Lwo years
l hope uClS wlll be able Lo come ouL wlLh credlble numbers aL frequenL lnLervals as Lhere ls a dlre need for such daLa lll1 dlrecLor general k 1 Chacko sald
eLLlng rellable and fasL daLa on servlces exporLs ls loL more dlfflculL Lhan generaLlng Lhem for merchandlse exporLs whlch flow Lhrough regulaLed porLs and alrporLs Servlce exporLers do noL flle shlpplng bllls aL cusLoms sLaLlon where a memo for Lhe exporLs ls lssued and ln Lhe case of l1 servlces Lhe dellvery ls mosLly elecLronlc 1he besL way of capLurlng flows ls Lhrough flnanclal lnflows/ouLflows and Lhe same ls recorded by Lhe 88l
LxporLs from Lhe servlces secLor recorded a more Lhan slxfold lncrease ln Lhe lasL nlne years from $2076 bllllon ln 200203 Lo $13197 bllllon ln 201011 accordlng Lo Lhe Servlces LxporL romoLlon Councll lndla expecLs a blg boom ln lLs servlces exporLs ln years Lo come as a large number of developed counLrles wlLh agelng populaLlons are looklng lncreaslngly lndla and Chlna for meeLlng Lhelr servlces need
ApproprlaLe daLa would also help Lhe governmenL ln lLs Lrade negoLlaLlons llke Lhe ongolng Lalks wlLh Lhe Lu and Lhe Asean where lL could prlorlLlse lLs demands accordlng Lo scope
4 FII limit for purchase of G-secs to be raised soon:Finance Ministry The government is likely to soon increase the purchase limit oI government securities by the Foreign Institutional Investors (FIIs), a move that will help it meet the enhanced market borrowing target without hurting liquidity position in the system.
The FIIs, a Finance Ministry oIIicial said, has almost exhausted the Rs 43,650 crore (USD 10 billion) investment limit Ior purchase oI G-secs and they would not be able to buy more securities unless the ceiling is enhanced.
As per the latest data, the FIIs investment in G-secs were at Rs 42,388 crore.
"We could increase the limits Ior FIIs investment in G-secs soon as we need money," a Finance Ministry oIIicial said without speciIying the proposed limit.
G-secs comprise treasury bills and dated securities issued by the central and state governments.
The Government last month revised its market borrowing programme Ior 2011-12 and decided to raise an additional Rs 52,800 crore. Following the revision, the government will raise Rs 4.7 lakh crore Irom the market, up Irom Rs 4.37 lakh crore in the previous Iiscal.
There are apprehensions that increased government borrowing would reduce the credit availability Ior the private sector.
The government had earlier relaxed the norms Ior FII investment in long term inIrastructure bonds. 5 Labour unrest may drive Maruti to Gujarat Maruti, which is synonymous with Haryana and Gurgaon, is looking outside the state to set up its operations. The continuing labour unrest at its Manesar and Gurgaon plants appear to have hastened its search, and the company is zeroing in on Gujarat.
Sources say the Japanese automaker, Irustrated over the repeated interruptions in production due to labour problems at Manesar, wants to quickly Iinalize its expansion plans beyond Haryana, something that's not liked by the state government but is seen as "urgent" by the company's management.
Already, Maruti car sales have been aIIected, and more worryingly Ior the Iirm, the demand seems to have been hit because oI the uncertainty about delivery schedules, making the management oI the country's biggest car-maker rather anxious.
While Suzuki chairman Osamu Suzuki met Gujarat chieI minister Narendra Modi on September 8-aIter the collapse oI the Iirst peace agreement and in between the second labour strike-the company's board looks set to approve the proposal to invest Rs 18,000 crore, including Rs 6,000 crore by auto ancillaries, in Gujarat Ior a plant spread over 1,000 acres and with a capacity oI two million units.
Interestingly, this will be the largest Iactory site Ior Suzuki globally, bigger than the combined size oI its existing sites at Gurgaon and Manesar. The new Iacility in Gujarat will mark the beginning oI a slow shiIt out oI Haryana-a move that could aIIect not just the automobile hub in Delhi's neighbourhood but also impact real estate activity in and around Gurgaon. Already, several automakers, ranging Irom Tata Motors to Ford and Peugeot-Citreon, have started work on setting up Iacilities in Gujarat, which is emerging as a major auto hub in the country.
For Haryana, this will be the second blow aIter Japanese auto major Honda Motorcycles and Scooters India decided to set up plants in Rajasthan and Karnataka Iollowing major labour unrest at its Manesar Iacility. Like HMSI, Maruti Suzuki executives admit in private that the Japanese management is not particularly happy with the Haryana government's handling oI the labour problems at its Manesar car plant as well as its engine and parts manuIacturing Iacilities. The production loss to the company due to the three strikes, including the current one which has already lasted 12 days, has been over 60,000 units, resulting in a production loss oI a Rs 1,800 crore. In the June quarter, Maruti's total income was estimated at Rs 8,500 crore, while the proIit was Rs 550 crore.
Maruti chairman R C Bhargava reIused to comment on the manner in which the Haryana government has handled the crisis, but minced no words while describing the present state oI aIIairs in the belt. He said, "The labour here is militant, and iI there is no improvement in the situation, this belt will surely suIIer industrially. Not only Japanese investments, but investment plans oI other countries and companies will also be hit."
The Iresh labour unrest at Manesar seems to have jolted the company out oI, what many insiders describe as, its "comIort zone". "There is clearly a need, an urgency, to look Ior a new production hub," they said.
In 2009, Haryana chieI minister Bhupinder Singh Hooda had told a public gathering (in the presence oI current Maruti MD Shinzo Nakanishi) that he had been assured by Osamu Suzuki that all Maruti's expansion plans would be undertaken "only in Haryana". Maruti's Ilirtation with Gujarat now also betrays its disillusionment with Haryana. Company executives also say in private that the movement beyond Haryana (especially the NCR region) will also mean that Maruti is insulated Irom the "Delhi's political inIluence". Bhargava has already blamed the political interIerences Ior the labour troubles at the company, though he has reIrained Irom naming anyone.
II the Gujarat proposal goes ahead, the production Irom the site at Becharji in Mehsana is expected to start by 2015. In the Iirst phase, which will be completed by 2020, a capacity Ior one million units will be build. The next phase oI expansion will Iollow.