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Child's Play
India is the largest kids market in the world. The Rs 20,000-crore market
is expected to grow at 25 per cent per annum. The branded kids wear market
alone is worth around $600 million and is estimated to touch $850 million
by 2010. Over 90 per cent of the Rs 2,500-crore toy market is unorganised,
and there is a huge potential for organised players to expand. An
analysis.
The Net Effect
The spending on e-governance is
expected to cross Rs 4,000 crore this year, according to a survey. This is
30 per cent more than last year's figure of Rs 3,014 crore. By 2009, it
will touch Rs 10,000 crore. To put it in perspective, India spends close
to Rs 1,00,000 crore on the social sector, and e-governance can speed-up
government projects and plug leakages. A look at how the e-governance
initiative is spreading in the country.
Secure Cyberspace
Many web sites contain design
flaws, thus, exposing them to hackers. Much of the data indexed by search
sites can be misused, and site owners may not realise that sensitive or
confidential information is so readily available as part of a search
index. As more businesses put up web sites, the danger of hacking is
increasing. A look at how to secure web applications.
Rural-Urban Divide
The rural-urban divide continues despite a high growth rate. According to
the 61st round of the National Sample Survey, apart from rural-urban wage
differentials, gender differentials are very much a part of the
present-day Indian economy. The urban regular wage earner earned Rs 194 a
day, which was one-and-a-half times the rural average of Rs 134 a day in
2004-05. Interestingly, the wage gap is most pronounced among graduates.
An analysis.
The Asian Agenda
Is a region-wide free-trade
area a realistic goal? So far, 183 free trade agreements have either been
signed or are being proposed or negotiated across Asia. The share of
intra-regional trade has risen to about 55 per cent last year from 40 per
cent in the early 1990s. Aside from trade in goods, there is a need to
focus on free trade in services. Given the stalled WTO talks, it is vital
for Asian countries to pursue further market opening and structural
reforms.
Portable Numbers
With department of telecom
setting April 2007 as the deadline for mobile local number portability,
consumers are gearing up to expect better services. According to telecom
regulator TRAI's consultation paper, 30 per cent of mobile subscribers are
likely to port numbers. However, there is opposition from incumbent
operators. In the United States, they moved the court, in Europe, they
delayed the process till the regulator put its foot down. An analysis.
Rising Remittances
The remittances from overseas workers and professionals are soaring. Back
in 1990, a bare $2.1 billion flowed in from overseas Indians, but by 2005
the figure had risen to $24 billion. In fact, India is now on top of the
remittances heap; it accounts for a quarter of all remittances worldwide.
According to the World Bank's Global Economic Prospects of 2006, transfers
to South Asia outstrip traditional exports as forex earners.
The Multi-taskers
Modern families are racing to squeeze in more and more work into their
daily lives, according to a study by Yahoo and OMD media firm. Computing
and communications devices had people cramming an average of 43 hours'
worth of activity into a typical 24-hour day by "multi-tasking".
Mexico, India and China had the highest multi-tasking rates. The changing
landscape of modern families may be a challenge for marketers.
Cutting Down e-Waste
Some 20 million to 50 million tonnes of e-waste are produced each year,
most of which ends up in the developing world. Many technology firms are
eliminating certain chemicals and offering recycling schemes to help
customers dispose of obsolete equipment. Yet, there is a wide variation in
just how green different firms are, according to environmental lobby group
Greenpeace. A status report.
The Building Boom
Is an asset price bubble building up in the real estate market? Flats in
posh Mumbai areas sell at the rate of Rs 50,000-70,000 a sq. ft. and
housing plots in Gurgaon are going for Rs 1 lakh a sq. yard. This may
sound like music to those who have been clinging on to their assets, it
portends danger to buyers. The high real estate prices keep the majority
out of the housing market and make the dream of owning a house more
distant.
The Learning Curve
India's investment in education-as a percentage of GDP-is lower than not
just of countries in the West but also some of the emerging economies,
including China. The percentage of population in the relevant age group
enrolled in higher education too is the lowest among countries with which
it must compete. Clearly, there is a need to scale up substantially the
physical infrastructure and attract better faculty by offering market
wages.
Trading Times
Even as Prime Minister Manmohan Singh's economic diplomacy is taking new
wings, here's more cheering news. Trade between India, Brazil and South
Africa (IBSA) is set to touch $10 billion (Rs 47,000 crore) in 2007, an
UNCTAD study has indicated. From a mere $200 million in 1998, Indo-Brazil
trade touched $2.5 billion in 2005 and is expected to be $3 billion in
2006. India-South Africa trade similarly has grown to $4 billion in 2005.
Change In Climate
Industrialised nations' emissions of greenhouse gases edged up to their
highest levels in more than a decade in 2004 despite efforts to fight
global warming. The figures, based on submissions to the UN Climate
Secretariat in Bonn, indicate many countries will have to do more to meet
the goals for 2012 set by the UN's Kyoto Protocol. What are the
implications for the world at large?
Flying High
Asia, led by India, will fly high. The region will witness the second
highest growth in international air traffic till 2009, says a report by
the Centre for Asia Pacific Aviation (CAPA). West Asia (which the report
treats as distinct from the rest of Asia) is projected to grow the
fastest. The report estimated a worldwide growth of around 5 per cent. In
India, the number of international passengers is expected to grow 20 per
cent.
The Middle Path
The middle income group (MIG)-those with an annual household income of Rs
2-10 lakh per annum-is expected to increase at 13.7 per cent per annum
over the next four years against 12.2 per cent over the last four years,
says NCAER. Further, the size of the lowest income class will shrink from
the current 72 per cent to 52 per cent. This is expected to significantly
boost the sales of consumer durables.
Net, Net Gain
Indians are taking to the world wide web in a big way, outpacing the US
and China in terms of online population. The total online population, aged
over 15 years accessing the net, in India rose 7.8 per cent to 18.02
million in June, from 16.71 million in March. The growth in the country's
online population outscores the rise of 2.7 per cent in the world's online
audience size, which rose 713 million in June, from 694 million in March
this year. A look at the unfolding revolution.
Surge In Exports
Indian exports are on a healthy track, touching $100 billion this year.
Merchandise exports for 2005-06 rose approximately 25 per cent over the
previous financial year. Exporters have widened their market base. In
2004-05, services exports grew 71 per cent to $46 billion and by January
2006 had surpassed the previous year's performance with 75 per cent
growth. Interestingly, Indian companies are making gains in
non-traditional areas like Africa and Latin America.
New Harvest
Reliance Industries, ITC, Godrej and Pepsi are just a few companies eager
to enter contract farming in a big way. These companies are looking at the
irrigated field of western Maharashtra to pursue investment plans. An
analysis of how far contract farming has come, and what needs to be done
to plough ahead. Will contract farming mean more jobs, regulated farming
and changing crop patterns?
Soaring Suburbs
Suburbs are the new growth engines. Gurgaon, Noida, Thane, Howrah,
Kancheepuram... the list is endless. With the realty boom continuing,
suburbs are fast catching up with cities in spreading the consumer culture
far and wide. With the rising population in suburbs, marketers now have a
new avenue to spread their message. A look at how suburbs are leading the
way.
Trading Days
The World Trade Organization talks may have failed, but developed and
developing nations have very little to gain from stalling negotiations.
Nations are already trying out new permutations and combinations in
forming alliances, and regional blocs; free trade agreements are the order
of the day. An analysis of the gameplans of various regional economies in
furthering their interests.
E-Learning Takes Off
In the knowledge economy of the 21st century, the power of e-learning is
unfolding at a furious pace. IDC estimates the e-learning industry is
about $10 billion in size. Education over the internet is big business,
and IBM, Microsoft, NIIT, among others, are raking in the moolah. Large
banks and other training-focussed institutions and universities worldwide
are turning to web-based classrooms for disseminating knowledge.
The Middle Path
The Indian middle class is seen as the driving force behind the retail
revolution in the country as well as its future economic growth.
Incidentally, this group, along with its counterparts in China, Russia,
Brazil and other emerging economies, has outscored a host of who's who in
the global arena in a list of Top 50 People Who Matter published by
Fortune. A look at how the middle class has evolved over time.
Sailing Season
There's no two ways about it; India needs better port infrastructure. A
beginning has been made on this front-more than Rs 55,000 crore is
expected to be pumped into the sector. There are other problems as well:
the growth contribution of the western ports is more than 68 per cent
compared to 9 per cent in the case of the eastern ports. The sector now
has the opportunity of putting its ship in order, correcting regional
imbalances and starting afresh on an even keel.
Parade Of Professionals
A
world trade organization committee has come up with suggestions to make
licensing and qualification requirements and procedures more transparent
and less restrictive for professionals. The push for mutual recognition of
degrees wherever possible is good news for Indian professionals seeking
work opportunities in the US and other developed nations. An analysis of
the obstacles in the path of Indian professionals and the way forward.
Oil On Boil, Again
Oil is hitting new highs after a US government report showed strong fuel
demand in the world's top oil consumer. Prices also drew support from
international tensions ranging from Iran's nuclear ambitions to North
Korea's missile tests. Adjusted for inflation, oil is more expensive now
than at anytime since 1980, the year after the Iranian revolution. A look
at how oil is affecting economies, and what's in store for nations.
Driving The Market
India is becoming key to the growth plans of global auto makers as its
emerging market and low-cost manufacturing base offer an alternative to
rival China. To cite just one example, Japan's Suzuki Motor Corp has said
it would build a new compact car in India for Nissan Motor Co to sell in
Europe. India's passenger vehicle market is only a fifth of China's, but
is forecast to nearly double to two million units by 2010.
Date With Dragon
The 44-year-old freeze in trade relations between India and China across
the 14,600 ft Nathu la border thawed. For the moment, trade would be
restricted to 29 items for export from India and 15 for import. There are
demands that the border trade should widen to full-fledged Sino-Indian
bilateral trade that can actually benefit the economies of both nations. A
look at the wider trade options for both the Asian giants.
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