India grows younger at sixty

"If I believe I cannot do something, it makes me incapable of doing it. But when I believe I can, then I acquire the ability to do it even if I didn't have in the beginning" these are the golden quotes by Mahatma Gandhi, which I truly believe.

This year India is celebrating its sixty year of independence. Here are some facts about India, which I thought of sharing with all.

With an estimated population of 1.12 billion, India is the world's second most populous country and is expected to be the most populous by 2030. With the world's 12th largest economy at market exchange rates and the 3rd largest in purchasing power, India has made rapid economic progress after independence. India maintains the third largest military force in the world, which consists of the Indian Army, Navy, and Air Force. Auxiliary forces such as the Paramilitary Forces, the Coast Guard, and the Strategic Forces Command also come under the military's purview.

Foreign exchange reserves have risen from US$5.8 billion in March 1991 to US$208 billion in June 2007. With a GDP growth rate of 9.4% in 2006-07, the Indian economy is among the fastest growing in the world. India's GDP in terms of USD exchange-rate is US$1,103 billion. India has the world's fourth largest GDP at US$4.156 trillion. India's per capita income (nominal) is $979, ranked 128th in the world, while its per capita (PPP) of US$3,700 is ranked 118th.

Well does that mean India is successful ?

Well success has different interpretations. For me India breaking out of the shackles and becoming a free economy is success, that we are the fastest growing economies in the World is success, that we have become an important factor in the IT revolution is success, that some of the richest people are Indians is success, that we have had the most beautiful women in the Miss World and Universe competitions is success, that we are moving towards an unmanned mission to the moon is success. I could keep going on and on and yet there would still be many more things we need to do.

Well, i would like to get your(my readers) views as well on India's achievements, challenges, priority etc..

What does it mean to be independent ? What does it mean to us? As Indians. As a nation. As a rising economic power in the world. In an increasingly global economy. And culture. What have we done right? And what, has gone horribly wrong? And what are the lessons learnt?

Post your valuable comments here. Heres' a video to give you some inspiration..

Key Issues and Challenges for Indian Inc.

Having enjoyed strong growth over the past few years, India's IT industry spurred primarily by the bustling services and software markets now faces the danger of slowing to a halt if the country does not resolve challenges brought about by an appreciating currency, upcoming taxes, severe manpower crunch, and visa restrictions.

1. Appreciating currency
The main reason for the rupee's appreciation since late 2006 has been a flood of foreign-exchange inflows, especially US dollars. The surge of capital and other inflows into India has taken a variety of forms, ranging from foreign direct investment (FDI) to remittances sent home by Indian expatriates. In each case, the flow seems unlikely to slacken. The rise of the rupee against the dollar has Indian outsourcing companies worried, as two-thirds of their business comes from the United States. A rising rupee has pushed down exporters' rupee revenue, even as their costs locally go up. To counter this challenge NASSCOM had asked the Indian government to restore some of the export incentives that were earlier provided to Indian outsourcers.

2. Upcoming taxes deterrents
The budget introduced a fresh set of deterrents such as minimum alternative tax (MAT), service tax on lease rentals and "fringe benefit tax" on ESOPs (employee stock ownership plan), adding to the industry's existing list of woes. A large number of the operations of Indian outsourcing companies were set up under an export-promotion plan called the Software Technology Parks of India (STPI), which entitled them to tax breaks. But the STPI plan ends next year. Companies seeking tax benefits now have to move their operations to special economic zones, something that's not feasible for outsourcing firms, which have operations in multiple locations close to where staff are available.

3. Severe manpower crunch
According to a Forrester Research report released earlier this month, over 300 North American and European companies have set up their own offshore centers in India over the last two years to lower costs in product development and backoffice operations. But, the reported noted, more than 60 percent of these companies were now struggling to cope "due to spiraling costs, skyrocketing attrition, and lack of integration and management support". Most Indian IT companies are on a recruitment overdrive. For instance, TCS plans to hire 32,000 employees this year, while Infosys intends to hire some 24,500 and Wipro around 14,000 people. Corporate India would undergo severe manpower shortage in the next five years due to gap in the demand and supply of skilled human capital, says a PHDCCI report. To reduce costs, many companies are also setting up centers in India's smaller cities. For instance, a leading BPO service provider FirstSource, opened five new facilities in cities such as Hubli, Vishakapatnam, Cochin and Pondicherry.

4. Visa restrictions
the biggest challenge India's IT industry currently faces is the H1-B visa restriction imposed by the United States. "While the big companies [in India] have a bank of employees with H1-B visas, smaller firms in both India and the United States are suffering. Microsoft Chairman Bill Gates slammed the federal government's strict limits on temporary visas for technology workers, saying that if he had his way, the system would be scrapped entirely. Many in the industy are optimistic that the 65,000 cap on H1-B visas will be lifted soon.

Why investing in Indian real estate is highly rewarding

With property boom spreading in all directions, real estate in India is touching new heights. Industry experts believe that Indian real estate has huge demand potential in almost every sector -- especially commercial, residential and retail. Policy changes introduced by the Government in February 2005 allowed 100 per cent foreign investments in construction projects with fast-track approvals. But the real attraction for foreign investors is potential investment returns of 25 per cent and more in Indian projects that might be hard to come by in the US and in Western Europe today.

The positive outlook of Indian government is the key factor behind the sudden rise of the Indian Real Estate sector - the second largest employer after agriculture in India. This budding sector is today witnessing development in all area such as - residential, retail and commercial in metros of India such as Mumbai, Delhi &NCR, Kolkata and Chennai. Easier access to bank loans and higher earnings are some of the pivotal reasons behind the sudden jump in Indian real estate. Growth in commercial office space requirement is led by the burgeoning outsourcing and information technology (IT) industry.

By 2010, the IT sector alone is expected to require 150 million sq.ft. of space across major cities. It is estimated that in the residential sector there is a housing shortage of 19.4 million units out of which 6.7 million are in urban India. The increase in purchasing power and exposure to organised retail formats has redefined the consumption pattern. As a result, retail projects have been mushrooming across even B-grade cities. The retail market is expected to grow at around 35 per cent. Industry observers feel that this growth is facilitated by favourable demographics, increasing purchasing power, existence of customer-friendly banks and housing finance companies, professionalism in real estate and reforms initiated by the Government to attract global investors.

Why Invest In Indian Real Estate
Flying high on the wings of booming real estate, property in India has become a dream for every potential investor looking forward to dig profits. All are eyeing Indian property market for a wide variety of reasons:

* It’s ever growing economy which is on a continuous rise with 8.1 percent increase witnessed in the last financial year. The boom in economy increases purchasing power of its people and creates demand for real estate sector.

* India is going to produce an estimated 2 million new graduates from various Indian universities during this year, creating demand for 100 million square feet of office and industrial space.

* Presence of a large number of Fortune 500 and other reputed companies will attract more companies to initiate their operational bases in India thus creating more demand for corporate space.

Recent big real estate deals in India
* The biggest mall of the world--Mall of India--planned by DLF Universal along NH-8--will have 32 acres spanning a huge entertainment area and large city town squares offering a total retail experience.

If the year 2006 was marked by some of the country's biggest land deals, the future of India is set to usher in the gold rush of realty.

Why Investing in India is very rewarding

Indian economy is growing really fast... It's the second fastest growing economy on the planet, and it’s not surprise that India is brimming with plenty of investment opportunities. Just recently, American Express predicted that India's 100,000 'dollar millionaires' will grow by 12.8% a year for the next three years. That's a whole lot of rich Indians. What's more, McKinsey Global Institute predicts that the average Indian's income will triple by 2025.

The first and second-generation reforms have created a conducive environment for foreign investments in India. Market oriented policies are boosting economic
activity, all round development and GDP growth rate. Government procedures are constantly being simplified and paper work minimised. As the Indian economy gears for competition in the international market, overseas investors clearly see the potential for attractive returns from investments in India, which is also evident from the many FDI success stories already achieved.

The country is set to capture 1% of global trade soon, while merchandise exports have grown an average of 24% a year over the past four years, according to Economy Watch. Goldman Sachs predicts India will rise to be the third largest economy in the world by the year 2035.

India's influence on the world economy will be bigger and quicker than what was implied earlier, Goldman Sachs has reported. It also predicts 8% sustainable growth for India till 2020 (Click here for more details on the report)
More Quality Links :
Ready Reckoner on Investing in India
The Complete Goldman Sachs Report