INSIDE THIS ISSUE
   
   
   
  01 MAIN
   
   
  02 TRADE & ECONOMY
   
   
  03 INVESTMENT UPDATE
   
   
  04 NEWSMAKERS
   
   
  05 INFOTECH
   
   
  06 CULTURE
   
   
  07 TRAVEL
   
   
  08 CALENDAR
   

   
  HIGHLIGHTS
   
 

India as a new Medical Transcription hub
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  Textiles and Handicrafts
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  Goa
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  05. INFOTECH
   
 
  IT sector attracts US$8.6billion investment
 
 
   
  According to the data compiled by Ministry of Communications and IT, the global corporations have pledged investments of US$8.6 billion in the telecom and Information Technology sectors in 2005-06.
 
 
         
A consortium of non-resident Indians have proposed investment of $3 bn. Mircosoft, which has announced investment of 1.7 billion dollars in the country on research and development, education, productivity and governance. Following Microsoft closely is Intel, which has proposed to invest 31.1 bn in research and development, marketing, education and setting up a venture fund.

Networking major Cisco has announced an investment of 31.1bn,
  while EMC said that it plans to invest 3250 mn in India.

Ericsson has announced an investment of $250 mn for telecom manufacturing and research and development in Chennai and Jaipur Telecom maor Nokia and Samsung has invested 200 million dollars in the country on a manufacturing facility.

Nokia is manufacturing handsets in Chennai and Samsung in Gurgaon. Tessolve Services too will spend
  $200m in India on a Assembly Test Mark Pact facility in the Fab City that will come in Hyderabad.

Siemens, Flextronics and Elcoteq have announced an investment of $100 mn each in the country. French telecom company Alcatel has lined up investment of $80 mn in India. Aspcomomp has announced an investment of $70 mn spending on setting up a hardware manufacturing facility in Chennai.
   
     
  ITeS sector set to touch US$26 billion by 2009  
             
  According to credit rating agency ICRA, the Indian information technology enabled services (ITeS) industry is poised to touch US$ 26 billion by 2009-10 and US$ 10 billion by 2006-07. ICRA said in its latest research report that with the global ITeS industry expected to maintain a healthy growth rate over the medium   term, corporations are expected to continue outsourcing many of their labour-intensive business process service tasks to developing countries like India to gain cost savings and quality advantages. The report said that demand growth in the ITeS industry is likely to be export-led, with the domestic market also   expected to grow at a rate in excess of 50 per cent. In the report, ICRA said that the biggest challenge which the ITeS industry in India was facing was lack of good infrastructure. It said that the ITeS sector in the country was facing the threat of rising labour costs, high attrition rates and security concerns.  
         

 


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