Foreign Direct Investment fall

Topic: FDI inflows may fall short of the target

Economic slowdown in both the developing and the developed countries, the rising inflation rates touching a high of 11.05% in past 13 years due to rising oil prices which touched a new high of $140 per barrel which is double compared to $70 per barrel in August 2007 are the main reasons for the failure to achieve
the target of $35 billion in current fiscal.

The above main two reasons along with other reasons like huge volatality in the stock market, low infrastructure investments, failure on governments side to strike a deal between U.S regarding Nuclear deal will result in the failure to achieve target by $7-8 billion as predicted by CEO’s of leading companies,
in a meet organised by Associated Chambers of Commerce and Industry of India(Assocham).

Finance Minister P. Chidambaram has proposed a request to oil producing countries to increase production which will stabilize the oil price in Internaional Market. He advocated a new mechanism “Price band mechanism” according to which there is high end and also a low end between which the prices are bound to
fluctuate so that both the producers and the consumers will not be affected too much by price rise.

According to Sajjan Jindal the Assocham President the domestic industry profitability would come down by 15-20% due to insurmountable inflation rate.In the previous fiscal the FDI inflows were estimated to be $25 billion as against the expected flow of $30 billion.   

Increasing Power Demand in India

Topic: Increasing Power Demand in India

According to leading International Consultant Mckinsey and Company’s report “ Powering India – the road to 2017”,  the need for investment in the power sector would be around $600 billion. The need would be around 3,15,000 MW supply compared to present estimates of 1,20,000 MW supply.

The demand is increasing at faster rate due to four key factors:
1) increasing demand in the Industrial sector
2) rapid consumption rate in the domestic sector
3) Governments initiative to provide electricity to all villages by 2012
4) Realisation of the growing demand in power sector

To achieve the target of 3,15,000 MW supply, the generation capacity should be around 4,15,000 MW which is nearly 3-4 times the present generation capacity of 1,40,000 MW. All these indicates a greater investments has to be made in the power sector in the coming days to come. A well planned strategy must come into existence to meet the growing demands.

Source: The Hindu, June 17, Business

IPO Market

Topic: IPO status in Indian Economy

Recent Economic slowdown in U.S, easy ECB( External Commercial Borrowing) norms, low investment in stock-market, high inflation rate,  has hugely affected the IPO market in 08.

According to Assocham Eco Pulse study, there had been decline in the primary markets and the number of offerings made are one each in April and May.

Companies are postponing their IPO offerings because of the slow down of economies among the leading powers of world and also because of ECB norms. According to some result the IPO market would return to its previous state in the last quarter of year, due to stability being reached with respect to inflation rate as a result of corrective measures taken by government. The number of offerings is only 19 compared to last year’s 44 in the first five months.

Source: The Hindu, Business

10th Annual BPO Strategy Summit

Topic: 10th Annual BPO Strategy Summit

In the tenth annual BPO Strategy Summit held recently  in Bangalore, the top brass of Nasscom (National Association of Software and Service Companies) gave future insight of the BPO Industry.
Nasscom  President,  Som Mittal  in his address said the future interest domain of BPO industry would be rural areas.  He also pointed out the fact that the industries growth would not be intimidated by U.S Economic slow down or the decrease of rupee against dollar and he projected a positive outlook of the industry saying that its growth rate would be around 33% in year 08-09. The industry provided employment oppurtunities to 20 lakh people directly and would earn  revenue of $ 73-75billion by 2010.

According to Chairman of Nasscom  “ India is becoming a hub for process expertise combined with technical skills”. He expressed that there is dearth of skilled workers in  Industry and felt that Educational Institutions should  take a leading role in bridging this gap of skill shortage in industry.

Bullmarket Crash

Topic: Sensex’s downtrend movement

 The rising inflation rate and oil prices had its impact on the share market with Sensex crashing by nearly 500 points recently. The oil price per barrel touching an all time high of $139 in international oil market is said to be a major cause for fall in the bullion market. The major losers in trading marketwere Real Estate Sector, IT Sector, Oil and Gas Sector.

Along with it the rise in unemployment in U.S added to the woes of the stock market. Economists predicting recession in the U.S market, investor are worried about credit tightening. Most of the European and Asian markets witnessed the downtrend due to rising oil prices.

 

Property v/s other Investment Portfolio

Topic: Property v/s other Investment Portfolio

Role of Incubators in developing Entrepreneurship spirit

Role or Functions of Incubators

Incubators play an important role in encouraging Entrepreneurial Innovation. Incubators catalyze the funding of the project that has the capability to sustain in this era of high risk of investment. In view of the greater role played by the incubators in spreading Entrepreneurship spirit, it has been established in major developed cities world-wide  to act as a saviour to Entrepreneurs, and is being thought of to be established in the developing cities, in both the developed Economy and also the developing Economy.

 

In many of the Foreign countries Incubators are set up close to Universities of  National and International Importance. This has helped both Incubators and Universities to exchange innovative ideas which helps in greater degree of development of the outcome(product). Incubators play the role of providing space to bring innovative idea to production stage and acts as platform to develop “wet labs” for carrying their work. Incubators helps in raising funds by bringing in Venture Capitalist, Angel Investors in contact with Entrepreneurs. They also bring in Legal advisors, leading technologists in the area concerned and other service providers who play leading role in maintaining the uniqueness, integrity of ideas through Intellectual Property Rights. University Technology Transfer acts as platform to demonstrate Entrepreneurs, the cutting edge Technology that has developed over the years and can be utilized by them. Universities also acts as a platform to showcase the Entrepreneurial innovative product  and helps them in Marketing of their Product. Incubators  has also gained momentum in providing a complete package necessary to start a Enterprise.  

 

Incubators also facilitates Entrepreneurship by providing basic business and marketing skills. Incubators also bring specialists to deliver talks regarding business ethics, patenting and Management Skills. Incubators basically acts as a medium of transfer of technological research from University to Commercialization of ideas. Incubators help bring the Researchers from Universities into the domain of Entrepreneurship by reducing the risks involved in start-ups  by making them available the physical necessities such as space, wet laboratories and also provide them moral support. Incubators indirectly play the role of commercializing cutting edge technology products.

 

Several Incubators has identified the need to imbibe the spirit of Entrepreneurship among the Youth and created centres specially aimed to involve the youth.

 

Hello world!

Welcome to WordPress.com. This is your first post. Edit or delete it and start blogging!