India - International Political Economy

Toyota Announces $711 Million Indian Investment

ibs — Fri, 07 Nov 2008 00:09:33 +0000

The Toyota Motor Corp of Japan has announce that it will invest in India $711 million according to INAS.

The Indian investment is part of an extensive expansion plan for Toyota Kirloskar Motors that expects to produces a capacity of 100,000 units annually starting in 2010.

Toyota Kirloskar Motors is a joint venture between Toyota Motors and India’s Kirloskar.

India Economy Sees Interest Rate Cut

ibs — Thu, 06 Nov 2008 15:19:14 +0000

The Bank of India cut its prime lending rate by 75 basis points in an effort to help the Indian economy weather the current global economic crisis according to Reuters.

This leaves the prime lending rate at 13.25 percent which help the India economy continue its growth trajectory as the global economy slows.

A rate cut of this magnitude less than 6 months ago would have overheated the Indian economy as inflation continues in double digits.

Indian Economy Sees Drop in Inflation

ibs — Thu, 30 Oct 2008 22:29:12 +0000

The Indian economy saw its inflation rate drop to 10.68 percent in October according to Xinhua News Agency.

The wholesale price index (WPI) which includes prices for items such as raw rubber and groundnut seed declined 0.3 percent in addition to a 0.4 percent decline in items such as power, fuel, light and lubricants.

This Indian economic news continues to point the global economy and emerging markets towards a deflationary scenario in conjunction with a deep recession. (more…)

Inflation Slows Offering Relief to the Indian Economy

ibs — Fri, 12 Sep 2008 12:56:32 +0000

India’s inflation rate has slowed for the third week in a row offering welcome relief to the Indian economy according to International Herald Tribune.

With inflation at 3.72 percent a year ago, a drop from 12.34 percent to 12.10 percent is significant consider the Indian economy is ripe to overheat.

Consensus is the Reserve Bank of India (RBI) will continue tightening the money supply to help continue the inflation down trend. (more…)

India Inflation Slows but Offers Little Relief for Indian Economy

ibs — Sun, 07 Sep 2008 16:51:34 +0000

Despite a second week of India inflation slowing, the Indian economy is still overheated and continues to concern India’s central bank according to AFP.

The Wholesale Price Index is the key cost of living barometer for the Indian economy and has slipped from 12.40 percent to 12.34 percent in the last two weeks.

Nonetheless, India’s central bank is expected to raise interest rates in order to continue cooling the Indian economy. (more…)

GIC to Invest in India’s Arcil

ibs — Wed, 27 Aug 2008 13:06:34 +0000

GIC, the Singapore government sovereign wealth fund investment arm, plans to invest in India’s Arcil, Asset Reconstruction Company of India, through a 10 percent stake according to The Economic Times.

The India investment deal is subject to India’s Foreign Investment Promotion Board (FIPB) approval and Arcil’s CEO S Khasnobis Arcil declined to comment on the move by GIC.

Arcil is India’s largest asset reconstruction company otherwise known as an ARC. (more…)

Infosys to Buy Axon Group for $750 Million

ibs — Tue, 26 Aug 2008 14:24:15 +0000

Infosys, the leading Indian outsourcing company, plans an India investment of $753 million dollars to buy Axon Group, a multinational British consultancy, according to AFP.

The Infosys Indian investment comes just after other high profile Indian investments such as that of Tata Motor’s recent purchase of Jaguar and Land Rover from Ford.

Axon Group has approximately 2,000 in Australia, North America, Malaysia and Britain. (more…)

India Economy Sees 12 Percent Inflation

ibs — Sat, 09 Aug 2008 18:21:35 +0000

India’s Ministry of Finance has reported that the Indian economy is experiencing 12.01 percent inflation according to the Gulf Daily News.

The India economic news puts the Indian inflation rate at a 13 year high, and although the Reserve Bank of India (RBI) has taken measures to control inflation, the greater concern is whether or not the measure to fight double digit inflation will start to dramatically impact India’s economic growth. (more…)

India Trade Minister Blast US of Doha

ibs — Thu, 31 Jul 2008 13:22:12 +0000

Kamal Nath, the India trade minister, blast the US as he accused the United States of hurting the worlds poorest according to Guardian UK.

The comments by the Indian trade minister came during the current World Trade Organization (WTO) Doha round of talks in which agricultural tariff and subsidy policies among developed nations continue to cause angst for developing trading nations.

GIC to Invest in India $209 Million

ibs — Thu, 26 Jun 2008 13:27:28 +0000

Sovereign wealth fund GIC has announced it will invest in India’s Reid & Taylor $209 million according to Businessweek.

The GIC India investment with take more than a 25% stake in Reid & Taylor and continues to diversify the Singapore sovereign wealth fund’s portfolio.

Reid & Taylor, a wholly-owned subsidiary of S Kumars Nationwide, produces fabrics, apparel and home textiles and is a more than 100-year-old brand. (more…)