India moves ahead of China in stock market investment access

Jan. 17 – Starting from yesterday, India has allowed foreign individual investors to purchase stocks directly in Indian companies for the first time; previously, access to Indian stocks was only permitted through institutional investors. The move widens the ability of foreign investors to take advantage of India’s booming growth and is something the financial services lobby in India has been pushing for years. Back-end industries and analysts will also get a boost as interest from international individual investors and their brokerages in India will likely be huge. Continue Reading

Global brands must look to Asia for growth as Hermes begins selling saris to India

Op-Ed Commentary: Chris Devonshire-Ellis

Jan. 16 – The British Chancellor, George Osborne, has arrived in Hong Kong for a three-day tour of Asia and will be suggesting that Britain’s businesses look beyond the battered Eurozone economy and seek trade partnerships in the Far East. He will also visit other parts of China and Japan as forecasters warn that the UK economy has already slipped into recession.

“The problem of high indebtedness in Western economies means these are challenging times for the world economy,” Osborne was quoted as saying in The Observer Sunday newspaper. “But as we look to this difficult year ahead, I want to focus on reasons to be optimistic for the future. A richer, stronger Asia is an opportunity for the world, not a threat.” Continue Reading

Jan. 13 – India has launched the initial pilot run of the Aakash tablet PC, with some 100,000 units having been delivered this week. The PC, similar in look and functionality to an iPad, has been designed to specifically cater for Indian students and the Indian Ministry of Human Resource and Development is set to purchase 10 million of them to distribute to schoolchildren in attempts to improve literacy and educational standards across the country.

Jointly developed by the Canadian company Datawind and the Indian Institute of Technology Rajasthan, the Aakash is being manufactured in India at plants in Cochin, Noida and Hyderabad. By the end of March an updated version tweaked from observations made during this week’s run will be launched and distributed throughout the country at a rate of 5 million a month. Continue Reading

Jan. 12 – Microsoft has filed lawsuits against Chinese electronic retailer giants Gome and Buynow for allegedly selling PCs with unlicensed versions of Windows and Office software, Microsoft said in a statement on Monday.

The company is taking legal action against the Shanghai division of Gome, one of China’s largest electronic appliances distributors, and the Beijing Chaoyang branch of Buynow, one of the biggest computer malls in the country. Microsoft said it has filed the cases in the Shanghai Huangpu District People’s Court and the Beijing Second Intermediate People’s Court to fight for its copyright and compensation for financial losses caused by the infringement. Continue Reading

New law opens way for Marks & Spencer, Ikea, Nike, LV, Gucci and others

Op-Ed Commentary: Chris Devonshire-Ellis

Jan. 11 – After last month’s debacle where the Indian government first approved, then scrapped laws for 100 percent foreign direct investment in the domestic retail industry, the Indian government has finally reviewed its position and, with some changes, passed legislation yesterday permitting 100 percent FDI in single brand retail.

While the 100 percent route for multi-brand retailers such as Tesco, Wal-Mart and Carrefour has yet to be realized, it does pave the way for single brand stores to be opened across India – good news for franchisers, landlords and consumers in general. India Inc. certainly thinks so; shares in Indian retailers skyrocketed across the board on the Bombay Stock Exchange today. Continue Reading

Interview with Dezan Shira & Associates’ Principal and Founder Chris Devonshire-Ellis conducted by the emerging market news platform El Emergente

How would you characterize emerging market business in China, i.e. businesspeople and investors from Latin America, Africa, the Middle East or Eastern Europe?

“All emerging markets have their own specific issues that make them all unique, however they are commonly bound by several similarities as well,” comments Devonshire-Ellis. “Typically these are relatively high GDP growth rates, inexpensive labor, and a government in place that is relaxing foreign investment laws and is pro-business. However, these trends can also lead to bumps along the way, such as inflation and periods of transition that can make the business environment difficult at times to properly navigate as the rate of development of commerce in emerging markets often outstrips the legal and regulatory environment to effectively support it. From this perspective, emerging markets are similar. The main differences are cultural, and these can often be overcome through competent local hires.” Continue Reading

Jan. 9 – India will send a team of officials to China next month to conduct inspections on drug manufacturing units that export bulk drugs to India.

The three-member team from India’s Central Drug Standard Control Organization (CDSCO) has scheduled a 10-day inspection tour beginning from February 12, according to the Times of India. With over 45 percent of Chinese bulk drug exporters registered in India, the country is the biggest importer of Chinese pharmaceutical ingredients. Continue Reading