Japan Indian Investment update

In the last six months, Japan, with portfolio investment of US$ 4.4 billion, has pumped in US$ 1.5 billion into the securities markets in this country. This was revealed at a special address held at the Madras Chamber of Commerce and Industry (MCCI) by Japan's Ambassador to India Mr. Yasukuni Enoki. In the meanwhile, the US$ 5 billion-Japanese pharmaceutical giant, Eisai Co, Ltd, has become the first Japanese pharmaceutical company to set up a subsidiary in India. The new company will be called Eisai Pharmaceuticals India Pvt. Ltd. Headquartered in Tokyo, Eisai is world's 19th largest pharmaceutical company with products in over 70 countries.

US interest in Indian real estate

With the recent landmark legislation allowing foreign direct investment in real estate, the opportunity for participation in this formerly closed market is heightening The share of real estate in India's $700-billioneconomy has risen to around 7 percent from 5 per cent two years go. A US-based firm has entered a strategic partnership with New York-based real estate investment banking firm, Greenwich Group International LLC, to raise US$ 1 billion to finance commercial and residential projects in India. Royal Indian Raj will develop townships in four big cities Bangalore, Mumbai, Kolkata and New Delhi. The foreign investment promotion board has approved the first, an $18-million project in Bangalore.

Italy’s Tractor Manufacture to invest S10 million

Italy’s Same Deutz-Fahr is to invest $10 million (about Rs 44 crore) in India and convert its facilities in to a manufacturing hub of tractors for its southeast Asian, African and South Asian sales. Same Deutz-Fahr India will make tractors of about 60 HP-70HP with 4-wheel drives for the East Asian market and 50 HP tractors with two-wheel drives for Africa.

Excellent Growth for 18 services in current fiscal

As many as 18 service sector segments of the Indian economy are projected to clock “excellent growth” levels of 20-60 per cent in 2005-06 over the previous year, according to a Ficci survey on service sector growth trends.

Seventeen segments are poised to achieve “high growth” of 10 per cent -20 per cent, and barely five activities are slated to achieve “moderategrowth” (upto 10 per cent), in the current fiscal.

The survey, based on interactions with representatives of various service providers and operators, service-related associations and companies in both private and publicsectors, has showed that the segments projected to achieve “excellent growth” are retail trade in the organised sector (35%), road transport service (22%), domestic air passenger traffic (25%), international air passenger traffic (20%), total air cargo handled (20%), value-addedgovernment postal services (30%), telecom subscribers (30%), mobile subscriber (60%) and internet users (60%) among others.

The survey said that the segments likely to experience “moderate growth” are the overall retail trade (9%), railway passenger traffic (9%), railway passenger fare earnings (6%), construction (6-7%) and music industry (4-5%).

8.5 % industrial growth: Think Tank Report

Industrial sector is expected to grow by 8.5 per cent and manufacturing to tick 9.25 per cent , this fiscal, an economic think tank report has said.

“We expect the index of industrial production (IIP) to grow by 8.5% and the manufacturing index to grow by an even better 9.25%,” Centre for Monitoring Indian Economy (CMIE) said in its latest monthly report.