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June - July 2004
India Business Update
WILL EU ENLARGEMENT BENEFIT INDIA?
With ten more countries joining the European Union on 1 May, the new entrants are going to impress upon India the fact that its business relationship with EU will be enhanced following the enlargement. This was the view of the Irish ambassador Philip McDonagh. It is bound too have an indirect impact across the world, especially on countries which are strong partner of the EU, such as India.
Mr. Francisco da Camara Gomes, head of delegation of the European Commission in India, elaborating the benefits of the enlargement in various spheres said that there would be an almost 20% increase in population with the addition of 76 million people. This would inevitably boost economic growth, as GDP of European |Union of 25 countries will increase by 5% and create jobs in both old and new membner states.
This would not bring a uniform currency for
all 25 countries. "It will be a question of time before the Euro becomes
legal tender in these countries as well", said the EU ambassador.
IS PROGRESS DEVELOPMENT?
Is progress the same as development? Does culture
make a difference? What are the implications for international cooperation
of progress and development in India? These issues were discussed at a
seminar organised recently in Kolkata by Goethe-Institut and Max Mueller
Bhavan and the German agency for Technical Cooperation (GTZ).Inaugurating
the seminar, Dr. Martin Waelde, Director, Goethe-Institut and Max Mueller
Bhavan, talked of how the idea originated at Alexandria, Egypt. The seminar
will subsequently be held in Bolivia, Namibia, Russia and finally in Berlin.
He spoke of the wonderful collaboration received in Kolkata from scientists,
activists and intellectuals. Special thanks were offered to the Telegraph
for its association with the event. In his erudite exposition, Waelde described
India as a complex and diverse country full of contradictions.
"I DO NOT SEE INDIA SHINING" - MODY
Industry patriarch Russi Mody does not seed India shining the way it has been projected. On the other hand, the black shadow of the economy is all the more visible, though rays of light are there at the end of the tunnell. "I see no change of life-style of those people who live on the pavements and their hutments are in the same shape as it was long ago. Millions of people are there who have no water to drink. Again, they do not get proper treatment for their ailments, though India has developed in the health care sector a lot in recent times", he said while speaking at a seminar on 'Advanced Technologies in Air Conditioning & Refrigeration' organised by the Indian Society for Heating, Refrigerating & Air Conditioning, Kolkata Chapter. - BE Kol
CEO HEADS TO ROLL
Every year 20 pc CEOs of 200 companies, listed
in the prestigious Fortune 500 list, get sacked by the management. This
is because, they cannot perform upto the desired level and execute the
task given to them. "This is going to happen in India soon",
said Dr. Ranjan Das, Professor of Strategic & International Management,
Indian Institute of Management, Kolkata at a seminar on 'Management of
Human Resources & Business Strategy in a Globalised Economy' organised
by Merchants' Chamber of Commerce.Having said that execution is a separate
discipline, which has to be learnt to be a successful CEO, Dr. Das said
that the job of a CEO was to handle his colleagues in the right manner,
the tone in time of conversation with them had to be gentle and dialogue
must be candid.
RUPEE APPRECIATION LEAVES DGFT UNFAZED
Director general of foreign trade L. Mansingh
said that the appreciation of the rupee would not affect Indian exports.
He was addressing an interactive session held by FICCI and the Indian Chamber
of Commerce. On the contrary, it may gain by it. The country's main strength,
however, lay in the widespread value-addition to many items, particularly
agricultural products, which was higher than in China.India's export growth
rate till the end of February was higher by 14 pc over the previous year's
22 pc, the second highest in the world.
SENSEX BRIGHTENS ON NDA RERUN EXPECTATIONS
The expectations are based on predictions by
market analysts on the basis of their presumptive findings. It is hoped
that the thinking is not wishful, as political stability is the foundation
of any economic progress. The market breadth is no doubt positive on most
fronts. Heat seems to be off on the outsourcing scourge as the US deflation
threat, according to Greenspan, is now past. Favourable meteorological
forecast for 2004 predicts normal south west monsoon. India is ranked the
4th (after US, China and Japan) largest country in purchasing power. Germany
comes after India. Our GDP growth for the last quarter has recorded a double
digit surge.The Sensex opened at 5784 on 12/4 and closed at the special
3 hour session, on Saturday, 17/4, at 5862. The market opened on 19/4 at
5801 and steadily escalated to 5926 on 23/4. During the fortnight, Dow
Jones, Nasdaq & FTSE remained steady, around 10450, 2050 and 4525 respectively.
Similarly Nikkei's stable improvement propels its index just above 12000.
The full version of this article can be found in the print edition.