India, now a $1-trillion economy!

India is now a trillion-dollar economy.
According to a Credit Suisse report, Indian GDP at the current price level of the rupee (Rs 40.76 per $) stands at $1trillion. The strengthening rupee has now made India the 12th country to achieve this milestone.
With the Rupee appreciating to below 41 against the US dollar on Wednesday, it was the first day for the economy to be a trillion-dollar economy.
The report said that India's stock market capitalisation too stands at $944 billion, just shy of the $1-trillion mark. However, if one stretches the definition of what constitutes an Indian stock, plus does a rounding, the Indian stock market is also about a trillion dollars as of Wednesday.
The first ever attainment of these landmarks is likely to create many self-congratulations and media events in the coming days. Fundamentally, they do not change anything, but the likely hoopla will add to investor sentiment, says the Credit Suisse report.
The report, adding some history trivia, says that eight out of the 10 economies had their stock markets rise in the one-year period after they first crossed $1trillion mark in GDP. The United Kingdom is the only economy to stop being a trillion-dollar economy for a while after attaining the status the first time.
The report, however, says that there is nothing magical about $1trillion or any such mark; and that it is wrong to take quarter-end GDP and some interim exchange rates for the calculation of GDP in a foreign currency. Any apparent GDP growth in foreign currency denomination due to the exchange rate move is not real growth, it said.
The other economy that crossed the same mark recently is Russia, which was within the last 2.5% as per the latest published GDP data of Dec-06. Somewhat coincidentally perhaps, the economies that crossed $1t-rillion mark mostly had positive equity markets in a year after they first crossed the level, even though some may want to partly attribute the "coincidence" to the halo effect on inflows created by reaching such a milestone.
The trillion-dollar club
Country
GDP in Dec '06 ($ billion)
First crossed $1-trillion mark on
United States
13,458
31/12/1969
Japan
4,464
31/12/1980
Germany
2,890
31/12/1987
China
2,554
31/12/1998
United Kingdom
2,358
30/09/1990
France
2,227
31/12/1989
Italy
1,841
31/03/1990
Spain
1,217
31/12/2004
Canada
1,273
31/12/2005
Brazil
1,067
29/09/2006
Russia
975
N/A
India *
* 1000
25/04/2007
*-only India's GDP numbers are not as of Dec-06 but as of Mar-07 and using the most recent exchange rate.Source: Credit Suisse estimates
The Reserve Bank of India said on Monday that the Indian economy is expected to post a robust growth for the fourth straight year, expanding by an accelerated 9.2 per cent in 2006-07 as against 9 per cent in the previous fiscal.
The acceleration in growth during 2006-07 is driven by continued momentum in the services and manufacturing sectors, growth of which are expected to be in double-digit figures.
Combined NRI wealth more than India's GDP
The combined wealth of the 20-million strong non-resident Indians community is estimated to be over $1 trillion dollars -- more than the country's entire economy.
Overseas Indians are estimated to hold financial wealth, apart from real estate, gold and art, of over $500 billion. The total wealth would be over $1 trillion, according to the report by High-Powered Expert Committee appointed by the Centre to suggest ways to make Mumbai an international financial centre.
These NRIs were a natural beachhead as a customer base where an Indian Personal Wealth Management industry can get started. Their wealth management services were presently being sourced almost exclusively from abroad, the report said.
The report listed 11 activities typically provided by an international financial centre (IFC) and referred to PWM as one of the most important activities undertaken at an IFC.
According to the report, PWM for high-net worth individuals is estimated to involve management of personal assets of $8-10 trillion globally.

The 5 Ss of Japanese efficiency

5S is the acronym for five Japanese words, seiri, seiton, seiso, seiketsu and shitsuke, which signify order, cleanliness, purity and commitment.

The 5S philosophy focusses on effective workplace organisation, helps simplify the workplace environment and reduce waste, while improving quality and safety.

Seiri (sort) means to put things in order. Seiton (systematise) means proper arrangement. Seiso (clean) implies keeping things clean and polished in the workplace. Seiketsu implies purity and focuses on maintaining cleanliness and perpetual cleaning. Shitsuke is commitment.

This is a typical teaching and attitude towards any undertaking to inspire pride and adherence to standards established for the four components.

The principles underlying a 5S programme appear to be common sense -- and they are. But until the advent of 5S, many businesses ignored these basic principles. There is an order and logic to how 5S is carried out, which is:

1. Seiri or sorting

Seiri means sorting through everything in each work area. It requires keeping only what is necessary.

Materials, tools, equipment and supplies that are not frequently used should be moved to a separate, common storage area. Items that are never used should be discarded. This makes it easier to find the things needed and frees up additional space.

"Tagging" items is a common approach when deciding what is to be thrown away. An area is targeted; items likely to be disposed off are tagged with a red tag and a date. If the item is not used after a certain period of time, say, between one and six months, it is disposed of. Practising seiri at Sona Koyo, for instance, led to the freeing up of an 8x6 ft by removing unwanted rakes.

2. Seiton or systematise

This is the next step. It requires organising, arranging and identifying everything in a work area for efficient retrieval and return to its proper place.

Commonly used tools are readily available; storage areas, cabinets and shelves are properly labelled; floors are cleaned and painted to make it easier to spot dirt, waste materials and dropped parts and tools; spaces are outlined on the floor to identify work areas, movement lanes, storage areas, finished product areas and so on; and shadows are drawn on the tool boards, making it easy to quickly see where each tool belongs.

In an office, bookshelves are provided for frequently-used manuals, books and catalogues.

There are two important parts to systematic organisation -- putting everything in its proper place and setting up a system so that it is easy to return each item to its proper place. The second part is where labelling and identification practices are important.

3. Seiso or shining

Once everything from each individual work area to the entire facility is sorted and organised, it needs to be kept that way.

Regular cleaning and inspection makes it easy to spot lubricant leaks, equipment misalignment, breakage, missing tools and low levels of supplies. When done on a regular, frequent basis, cleaning and inspecting does not take a lot of time and, in the long run, actually saves times.

4. Seiketsu or standardise

Seiketsu ensures that the first three steps of the 5S programme continue to be effective. The good practices developed in the first three steps need to be standardised.

Therefore, organisations must develop a work structure that will support the new practices and turn them into habits.

5. Shitsuke or self-discipline

This implies continuous training and maintenance of standards. The organisation must build a formal system for monitoring the results of the programme. A follow-up is a must for the above four steps to continue to be practise.

There will have to be continuous education about maintaining standards. When there are changes that will affect the 5S programme -- such as new equipment, new products or new work rules -- it is essential to make changes in the standards and provide training.

A good way to continue educating employees and maintaining standards is to use 5S posters and signs.

Indian techies dominate start-up scene in US

Indian immigrants are a significant driving force behind the creation of new engineering and technology companies in the United States in the past decade than their counterparts from the UK, China, Taiwan and Japan put together.

Of an estimated 7300 US tech startups founded by immigrants, 26 per cent have Indian founders, CEOs, presidents or head researchers, a new study says.

"Indians have beaten the Chinese in start-up hotbeds like Silicon Valley with a share of 15.5 per cent, up from 7 per cent between 1980 to 1998, " says the study, "Silicon Valley's New Immigrant Entrepreneurs", by researchers in the master of engineering management programme at the Pratt School of Engineering at the Duke University.

The study, which covered 28,766 firms with annual sales of more than $1 million and 20 or more employees, comes nearly eight years after an influential report from the University of California, Berkeley, on the impact of foreign-born entrepreneurs.

"This study shows the tremendous contribution immigrants in general and Indians in particular are making to the US economy and global competitiveness. This is a win-win for America and for the immigrants that make it here," Vivek Wadhwa, Delhi-born Duke's executive in residence and the founder of two tech startups in North Carolina's Research Triangle told PTI.

Wadhwa, project's lead researcher, stressed that "the country should make the most of its ability to "get the best and brightest from around the world."

"Indians constitute less than one per cent of the US population and are starting many times the businesses as other groups. They are creating jobs and contributing tens of billions to the US economy. Without Indian entrepreneurs, it would not be the same", Wadhwa said.

AnnaLee Saxenian, study co-author and dean of the School of Information at UC-Berkeley, estimated immigrants founded about 25 per cent of Silicon Valley tech companies in 1999.

The Duke study found the percentage had more than doubled, to 52 per cent in 2005. The research debunks some recent myths about the notion that immigrants who come to the United States take jobs from Americans.

"The advantage of entrepreneurs is that they're generally creating new opportunities and new wealth that didn't even exist before them," Saxenian said.

"Just by leaving your home country, you're taking a risk, and that means you're willing to take risks in business. You put them in an environment that supports entrepreneurship, and this is the logical outcome."

Immigrants from the UK set up 7.1 per cent of the companies, followed by China with 6.9 per cent and Taiwan with 5.8 per cent.

Immigrant entrepreneurs' companies employed 450,000 workers and generated USD 52 billion in sales in 2005, according to the survey.

The share of Chinese and Taiwanese start-ups, which was 17 per cent in 1990-98 period, came down to 12.8 per cent between 1995 and 2005. The report adds that the number of Indian scientists and engineers in Silicon Valley has grown by 646 per cent between 1990 and 2000.

Indian immigrants dominated even on a state-wise basis. While in New Jersey, the share of Indian start-ups was a whopping 47 per cent, in Texas, it stood at 25 per cent. This was followed by California with 20 per cent, Florida with 18 per cent, New York with 14 per cent and Massachusetts with 10 per cent.

The study reveals that California, which houses the Silicon Valley, has emerged as the favourite destination for immigrant Indian entrepreneurs.

Around 26 per cent Indian startups were set up there. Around 36 per cent companies in the software sector were Indian, while in the innovation and manufacturing-related services, the figure was 24 per cent. In semiconductors, Indian start-ups shared the top place with the Chinese with a share of 15 per cent each.

However, the Indians failed to dominate in sectors like computers and communications, where their share stood at 15 per cent, lower than the Chinese (19 per cent) and Taiwanese (17 per cent).

The study shows that the largest number of companies started by Indians are in the software sector (46 per cent), followed by start-ups in the innovation and manufacturing-related services (44 per cent).

The Duke study found that 52 percent of Silicon Valley companies - and 39 per cent of California startups - were founded by foreign-born entrepreneurs.

Source : Rediff.com

2006- Hits & Misses!

Tamil film industry is on a bull run, as 98 films were released and nearly 25 films were profitable. Remember that last year only a dozen films made money out of 90 odd films!

The boom is attributed to the audience coming back to the theatres and youth patronising movies with new concepts and new heroes. Karunanidhi government’s decision to exempt films with Tamil titles from entertainment tax also boosted ticket sales. The usual formulaic film with six songs, five fights and a larger-than-life hero plus a lot of glamour seems to be outdated this year.

Tamil cinema became more popular in neighbouring states of Karnataka and Kerala and had a huge dubbing potential in Andhra. And after Bollywood, Kollywood is the second most popular export earner among Indian films. Today there is great demand for Tamil films worldwide, mainly due to Sri Lankan Tamils.

The message emanating from Kodambakkam tinsel town is loud and clear: Story and presentation is more important than making movies to boost a superstar’s inflated ego. And the audience was not willing to take what was thrust upon them. Hardwork, discipline and innovative ideas paid rich dividends at the box-office. Small films like Chithirem Pesuthadi, Kokki, Thalainagaram, Parijatham, Dishoom and Thiruttu Payale that distributors were initially reluctant to touch turned out to be gold. Thambi, Perarasu, Em Magan, Pattiyal, E and the latest film Tiruvilayadal Arambham were also money grossers.

Films with newness in presentation were welcomed by the audience while a few films with superstars and big hype failed miserably. Films like Vijay’s Aathi, Ajit’s Tirupathi, Arjun’s Madrasi, Vijaykanth’s Sudesi, Surya’s Sillunu Oru Kadhal, Puthupettai and others like June R, Jambavan and Nenjirikkum Varai were all duds.

At the box-office it was Vetayadu Vilayadu which was the biggest grosser as it made Rs 30 Crore worldwide for its distributors. The film had Kamal Hassan in a very different role, something he had not done before. Gautham Menon’s slick packaging along with Harris Jayaraj’s rocking music clicked with the youth.

Our audiences have also matured as they have become more script conscious and are not willing to accept a film just for the sake of a hero. They were willing to accept Vadivelu as a hero in Imsai Arasan 23am Pulikesi because its director Simbudevan was able to package the film with all essential ingredients and made a star out of Vadivelu.

The biggest discovery of the year was Vishal whose Sandakozhi released last December ran for 200 days and was a super hit not only in Tamilnadu but also Andhra. His Thimiru was also a big hit while Sivapathikaaram was average.

There were half a dozen celebrity weddings in Kollywood like- Laila & Mehdi(Jan 6), Surya & Jyothika (Sep 11), Manoj & Nandana (Nov 19), Renuka Menon & Suraj(Nov 30), Arun Vijay & Aarthi (Dec 1), Selva & Sonia (Dec 15).

NUMBER OF FILMS RELEASED IN 2006: 106

2006’s Top 5 films at the box-office

No-1 : Vetayadu Vilayadu
No-2 : Imsai Arasan 23 am Pulikesi
No-3 : Varalaaru
No-4 : Unakkum Enakkum
No-5 : Thiruttu Payale

Top five stars in 2006
(only actors with releases this year are included)

1. Kamal Hassan
2. Ajit
3. Vadivel
4. Vishal
5. Bharath

Top five heroines in 2006

1. Asin
2. Jyothika
3. Trisha
4. Nayanthara
5. Shriya

Stock Taking

Bharat- 5 films
Jyothika and Nayanthara- 4 each
Prakash Raj- 8 films (Negative roles)
Director- K.S. Ravi Kumar, Saran, Perarasu- 2 each
Music Director- D.Imman - 9, Yuvan- 7
Songs of the year- “Majal Veyil..." from Vetayadu Vilayadu and Vazha meenukkum vilanku meenukum kalyanam…” from Chithiram Pesuthadi

It surely is India's time now fair & square

In the past, India has been global number one in starvation deaths, getting food aid, getting foreign aid, and —according to Transparency International — in willingness to give bribes. But suddenly, after two decades of playing second fiddle, analysts such as Credit Suisse predict that India will grow faster than China in 2007. A country once regarded as a bottomless pit for aid is competing for the number one position in the global growth league.

Any country can do well for a year or two in ideal conditions. India’s big achievement is that it has grown at 9% for two quarters despite several weaknesses in policy and institutions. The World Bank’s Doing Business 2006 report estimates the difficulty across countries, and ranks India 116th out of 154 countries, far worse than China (91), Sri Lanka (75), Bangladesh (65) or Pakistan (50).

Enforcing contracts in India takes an average 1,420 days and involves 56 different procedures. Importing goods takes 41 days and 15 documents. Starting a new business takes 35 days of slogging. Tax payments have to be made 59 times a year and the process takes 264 hours.

Transparency International’s Perception of Corruption Index ranks India 83rd out of 133 countries, a sad commentary on our venality. Better for India is the World Economic Forum’s Global Competitiveness Index, which places India at the 43rd position out of 125 countries, ahead of the other BRIC countries (China, Russia and Brazil). But 43rd is a long way from number one.

The world economy is booming today, and lifting all boats. The average growth rate for developing countries is 7%, and even Africa has averaged 5.3% for four years. In such buoyant conditions, achieving 8-9% growth is less impressive than it would have been in the 1990s.

So, is India’s fast growth a flash in the pan, as in the mid-1990s? No, not at all. India is now more integrated with the global economy than ever before, and is becoming the senior partner in such integration. That represents a paradigm shift.

In the last three years, the ratio of exports of goods and services to GDP has shot up from 14.6% to 20.5%. India’s share in global merchandise exports has doubled from 0.5% in 1990-91 to 1%. Its share of global services exports too has doubled in just the last two years to 2.5%, and politicians in the US and Europe are petrified that India will grab millions of jobs from their countries.

Also, India’s growth of nominal GDP has been rising for three years at an astonishing 16% per year in dollar terms (the rupee has strengthened against the dollar). If this rate can be sustained, says Prof Arvind Panagariya, then in just 22 years India will equal the US’ GDP of $11 trillion in 2050!! Nothing remotely similar could be said of earlier business cycles.

Source : Economic Times