Did China miss an opportunity when they reorganized their telecoms last week? Robert Clark of BusinessWeek thinks so. He says that the reshuffling has been so domestically focused that it has missed the chance to prepare China Mobile and China Unicom, China’s two largest mobile phone operators, to become global players.

The pieces of China’s telecom reorganization have fallen into their well-telegraphed place. But the exercise has been wholly focused on the domestic market with the aim of bringing China Mobile back to Earth. What it really misses is the chance to prep Mobile and rival China Unicom to become global carriers.

Clark points out that the most growth in the mobile phone industry is coming from the emerging markets – Africa, India and Southeast Asia. American, European and India mobile operators are already trying to situate themselves in these markets. Bharti Airtel—India’s biggest mobile service provider—recently tried to acquire Africa’s largest provider, MTN. (more…)

The pharmaceutical business is tilting towards Asia. The region is being hailed as ‘the pharmaceutical hub’, and most multinational and domestic companies in the region believe it is inevitable that Asia will soon be leading the pharma market, reported pharmaceutical technology.

India, China and Singapore are expected to become leaders in the pharmaceutical sector. India and China have become major suppliers of APIs, with India also exporting high volumes of pharmaceutical dosage products. South Korea, Malaysia, Thailand, Taiwan and Hong Kong are also creating strong pharmaceutical bases, although these markets are mainly dominated by MNCs.

More clinical trials are also being conducted in Asia and India has taken the lead in clinical trial outsourcing. Asia is now returning to GDP levels of the 19th century when it was at its highest (12%). According to Goldman Sachs, India is expected to become the world’s third largest economy by 2050.

Many MNCs are investing and building their businesses in China and India, and it is expected that total pharmaceutical sales in China (at current levels of approximately $14 billion [€9 billion]) will double to $28 billion (€18 billion) by 2010.

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India China trade seems to me to be soaring like a kite tied to the ground.

While both countries celebrate having achieved a trade target of US$40billion set for 2010 in 2008, there are still only 120 companies of Indian origin registered wth the Indian embassy in Beijing, and even fewer companies of Chinese origin registered with the Chinese embassy in New Delhi.

While businessmen in both countries express a desire to do business in the other, barriers - social, political and financial seem to be keeping them at bay. Of the difficulties that Chinese firms face while doing business in India, Reuters reported - Chinese firms have found profits in India hard to come by. Tax barriers are everywhere, eroding their cost advantages. Corruption is rampant, adding another layer of difficulty. And Chinese goods have a low-quality image that is very hard to shake.

The challenges are not unique to India. Most are exactly what western companies encountered when they first arrived in China some 20 years ago. But Chinese companies, whose success so far has been largely built on their home-court advantage and low costs, are much less prepared to tackle those issues. 

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More than a century after Mahatma Gandhi went to South Africa, and a decade after China began to woo the rich continent for its natural resources, foreseeing the need for energy, India is following suit. The India-Africa Forum Summit, to be inaugurated by Indian Prime Minister, Dr. Manmohan Singh will begin tomorrow.

The meet is being attended by Heads of States of 14 African nations, who have the mandate of the entire continent as they have been chosen by the 54-nation African Union itself, the Hindu reported.

During the two-day summit India is likely to announce technology transfers and duty cuts for certain imports from Africa and assistance in developmental projects while striving to tap the immense mineral resources in that continent.

An Action Plan for furthering cooperation in areas like environment, health, education, energy and mining will be issued at the Summit, which could form a precursor for broader India-Africa Summit.

The Summit is also expected to issue a Declaration that will address broader areas of cooperation and “common views” on regional and international issues, including fight against terrorism, climate change and WTO negotiations.

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India’s State Secretary for Civil Aviation, Ashok Chawla provides his blue print for development and investment

Interview with Chris Devonshire-Ellis, Senior Partner, Dezan Shira & Associates in Delhi

The number of India’s total domestic passengers has doubled in just five years, and is set to expand even more rapidly. With more airports per square mile than any other Asian nation, a legacy of the British, much however needs to be done to upgrade, improve, and rebuild Indian airport capacity as anyone who has arrived at Mumbai or Delhi international airports well knows. But beyond the surface veneer of construction in progress, shabby terminals and dodgy washrooms, a revolution is occurring.

Ashok Chawla:
India has over 450 airports nationally, of which about 90 are currently operational. In conjunction with the Ministry of Urban Development (see other interview) we are highlighting a number of domestic airports for development which have a key strategic development role to play. However, firstly let me explain that all airports were previously managed by the Airports Authority of India, and that this has now changed. The AAI is now involved in two main models for airport infrastructure development. These are:

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India and China may be the flavour of the world markets, but when it comes to performance of their stock exchange indices in 2008, they are doing the worst in Asia. While the Bombay Stock Exchange’s National Index (popularly known as BSE 100 Index) dipped by 16.08% during the first two months of 2008, the Shanghai Stock Exchange’s Shanghai A Index slipped as much as 17.36% during the same period.

A comparison of major market indices in Asia by Thomson Financial reveals that none of the indices posted positive returns during the said period. The best performing index during the period was Jakarta Se Composite, which declined by less than 4% during the said period. Click on chart to enlarge.

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India, China and Vietnam have recently been ranked as the 3 hottest regions for property growth in the Asia-Pacific region over the next five years. Singapore which grew by almost 78% in the Central Businesss District, earned the distinction as the best location in Asia for overall real estate investment. Mumbai in India registered rental growth of over 50% over the year. Meanwhile, Malaysia was named a high-potential Reit market - according to the the second annual survey of real estate investment trusts (reit) Asia-Pacific. The REIT Survey was undertaken for financial services provider Trust Company and law firm Allens Arthur Robinson.

Although retail, commercial and industrial property have cooled in the last year, they will be the main focus for market growth, said the findings. The hotel and hospital sectors are expected to heat up, while Industrial and infrastructure property is forecast to experience slight growth. Residential property will remain in the cold, the survey said.

Meanwhile, Vietnam is the fifth most expensive office location in Asia-Pacific and 17th in the world, showed an annual report by Cushman & Wakefield. “Vietnam is booming,” said Toby Dodd, general manager of the company in Vietnam. Prime office rents in Vietnam are out of tandem with the rest of Asia as the country’s economic progress accelerates after its entry to the World Trade Organization, he said.

Ho Chi Minh City’s skyline

The country’s gross domestic product forecast for the current year is second only to the supercharged economies of China and India. With such strong economic fundamentals and rising foreign direct investment, the demand for office space is far outstripping supply, so Ho Chi Minh City’s rents have grown by a significant 40% over the last year to a rate of over US$68 per square meter per month (they should average US$35-40 per square meter) due to a lack of prime and Grade A office supply across the city, says the report.

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Singapore-based Changi airports has signed an agreement with Bengal Aerotropolis Projects Ltd. (BAPL) to invest $2.5 billion or Rs 10,000 crore to develop India’s first privately owned airport. The Durgapur Aerotropolis (airport city), India’s first, will be situated in the Durgapur-Asansol region of Bardhaman district in West Bengal an East India state.

The project will involve setting up of a Greenfield Airport, industrial park, logistics hub, IT park with a supporting infrastructure like housing, tourism, healthcare and social interchange facilities. While the airport will be developed over approximately 300 hectares, the supporting industrial and social infrastructure will be developed over approximately 650 hectares. The airport is expected to be functional in next 2.5 - 3 years and would have the ability to handle A-320 aircrafts.

The plan is part of a bigger idea to set up a health city and a sea port in addition to the airport. Last year, West Bengals Chief Minister, Mr Buddhadeb Bhattacharjee, said the Planning Commission was conducting a feasibility study with regard to the setting up of a sea port on the Shanghai model in West Bengal. (more…)

Who knew that in 1991 ( economic policy), India would come this far and welcome investors with open arms. In the last few years the Nation has changed its policies towards a fruitful object and continues to do so.

I can recall when I was studying economic and business legislations of India that we used to talk about whether the FDI limits would eventually change to bring in more money and a better infrastructure or would Indians be driving on those bumpy roads and suffer in jams with its overgrowing population due to lack of adequate flyovers; will there be enough place at its airports to accommodate the immense increase in air traffic to India or for that matter will there be airlines other than Air India/Indian Airlines/a few more. Today the picture as changed and seems like we have the right people on board to gauge the needs of the hour.

Yesterday, 30th January 2008, the Government of India (GOI) showed how liberal it’s getting in its policies. The Cabinet Committee on Economic Affairs (CCEA) announced the following increases in the FDI limits in 7 sectors. Lets have a look below :

Sector/activity                                                           New Limit (max)        Old Lmit

oil refinery joint ventures with public-sector              49                                      26
oil firms  (1)

ventures involving the trading and marketing of        Deleted a rule
petroleum products. (2)

maintenance, repair and overhaul organisations        100                                   49
(MROs) and flying training institutes, helicopter
and sea-plane services

cargo and non-schedule airlines                                   74

ground handling services
(after requisite security clearances are obtained)`       74

Indian commodity exchanges     (3)                              49

mining and mineral separation of titanium
-bearing minerals and ores (4)                                      100

Credit information companies (5)                                 49

listed credit information companies                              24

Industrial Parks (6)                                                waviers (more…)

 The Asian stock markets have made many rich globally and brought them down too. But then India & China has had some recent up’s that’s made & making many millionaires to billionaires.

Would you like to know some richest Indians who together value $180 billion!

1. Lakshmi Mittal, President of the Board of Directors of Arcelor Mittal, No. 1 again, worth $51 billion

2. Mukesh Ambani, Chairman of Reliance Industries, $49 billion. Courtesy the bull run in the stock market last month net worth of Mukesh Ambani rose to $63.2 billion making him the richest person in the world, surpassing American software czar Bill Gates, Mexican business tycoon Carlos Slim Helu and famous investment guru Warren Buffett. This video shows who was in the top ten list in the world, before Mukesh passed these guys.

Then watch this video that speaks of the rankings of Mukesh and others in the month of September, 07. The lady shown at the end of the video is Nita, wife of Mukesh who looks after the social and charitable arm of Reliance Industries.

3. Anil Ambani, Chairman, Anil Dhirubhai Ambani Group -  $45 billion (Brother of Mukesh)

4. Kushal Pal Singh, Chairman, DL F Group, worth $35 billion after the listing of his flagship DLF and is also now the world’s richest real estate developer

The interesting point is that the four 4 together are worth more than 40 richest Chinese combined.

Now talking about Indian cities: lets have a look to see where the wealth lies:

The reports show that Mumbai and Delhi have topped the list. While there are 23 billionaires from Mumbai, Delhi has around 12. Pune and Bangalore has six billionaires each.

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