date – february 05 - 11, 2013 issue no. 511 · date – february 05 - 11, 2013 issue no. 511 1...

Date – February 05 - 11, 2013 Issue No. 511

1 News Feature -2

• India's per capita income rises to Rs 5,729 per month

• India's IIP (index of industrial production) slump likely over, growth up in Dec

2 Overseas Investment Page 3-7

• FII inflow into Indian stocks crosses $7 bn

• India Inc’s investment abroad jumps 179% in January

• FDI inflows can grow ten-fold, onus on govt to get that done: Experts

• FIIs buy Sensex shares worth over $5 bn in Oct-Dec qtr

3 Trade News Page 7-10

• Scotland eyes life sciences, renewable energy to boost trade

• India tops list of skilled migrants to Australia

• India-Uruguay to explore opportunities in iron ore mining and steel

• India-France bilateral trade touches €7.6 billion

4 Sectoral News Page 10-13

• 'India may be among top three aviation markets by 2020'

• Luxury market may touch USD 15 bn in 2 years: Study

• World keenly watching India’s solar power initiatives: Farooq Abdullah

• Manufacturing sector will spend more on IT this year: Gartner

5 News Round-up Page 14-15

• Indian consumers most confident globally in Q4, 2012: Nielsen

Date: February 05-11, 2013 0 Issue No. 511

Date: February 05 - 11, 2013 1 Issue No. 511

News FeatureNews FeatureNews FeatureNews Feature

India's per capita income rises to Rs

5,729 per month

India's per capita income, a gauge for

measuring living standard, is estimated to have

gone up 11.7 per cent to Rs 5,729 per month in

2012-13 at current prices, compared with Rs

5,130 in the previous fiscal.

The estimated rate of growth in per capita

income for the current fiscal, however, is lower

than the previous fiscal when it grew by 13.7

per cent.

"The per capita income at current prices during

2012-13 is estimated to be Rs 68,747 as

compared to Rs 61,564 during 2011-12,

showing a rise of 11.7 per cent," an official

release by the Central Statistics Office (CSO) on

Advance Estimate of National Income, 2012-13

showed.

The per capita income in real terms (at 2004-05

constant prices) during 2012-13 is likely to

attain a level of Rs 39,143 as compared to the

First Revised Estimate for the year 2011-12 of

Rs 38,037, it said.

The Gross Fixed Capital Formation (GFCF) at

current prices is estimated at Rs 29.94 lakh

crore in 2012-13 as against Rs 27.49 lakh crore

in 2011-12, the release said.

However, at 2004-05 constant prices, the GFCF

is estimated at Rs 19.44 lakh crore in the

current fiscal as against Rs 18.97 lakh crore in

the previous fiscal, it added.

The data also estimated an increase of 13.8 per

cent in the Government Final Consumption

Expenditure (GFCE) to Rs 11.87 lakh crore at

current prices for 2012-13 against Rs 10.43 lakh

crore in 2011-12.

On Private Final Consumption Expenditure

(PFCE) for the current fiscal, it has estimated an

increase of 12.8 per cent to Rs 57.06 lakh crore

at current prices as against Rs 50.56 lakh crore

in the previous fiscal.

"These advance estimates are based on

anticipated level of agricultural and industrial

production, analysis of budget estimates of

government expenditure and performance of

key sectors like railways, transport other than

railways, communication, banking and

insurance, availbale so far," said the data.

These estimates have been compiled using the

data on indicators available from the same

sources as those used for compiling GDP

estimates by economic activity, detailed data

available on merchandise trade in respect of


imports and exports, balance of payments, and

monthly accounts of central government, it

added further.

http://www.financialexpress.com/news/indias

-per-capita-income-rises-to-rs-5729-per-

month/1071020/0

India's IIP (index of industrial

production) slump likely over, growth

up in Dec

The worst is probably over for flagging Indian

factories but production was likely subdued in

December as global demand remained weak.

India's index industrial production (IIP), which

includes output at factories, mines and utilities,

likely rose an annual 1.1 percent in December

after shrinking 0.1 percent in November,

according to the poll of 24 economists

conducted this week.

If realised, that would show factory output grew

in just six months of last year but economists

said Indian manufacturers were expected to

fare better this year.

"The fall in industrial production has bottomed

out in the final months of 2012 but will not pick

up at a sharp rate, it will only be a very gradual

recovery," said Aman Mohunta, an economist

at Nomura.

Output in the country's eight key infrastructure

industries, which account for almost 40 percent

of factory production, expanded just 2.6

percent in December from a year earlier, a tad

higher than November's 1.6 percent.

And output in three of those eight key

industries-natural gas, coal and fertilisers-

contracted, which likely had a bearing on

overall industrial production.

Factory output has also been hurt by relatively

weak global trade, especially from Europe,

India's largest trade partner, with the debt-

ravaged euro zone economy expected to

contract again this year.

"We are not seeing a broad based improvement

in exports for IIP to reflect that," said Upasna

Bhardwaj, an economist at ING Vysya Bank.

Exports, which account for one-fifth of India's

gross domestic product, fell for eight

consecutive months up to November but

December trade data showed the pace of

contraction was slowing.

http://www.financialexpress.com/news/indias

-iip-(index-of-industrial-production)-slump-

likely-over-growth-up-in-dec-

economists/1071386/0


Overseas InvestmentOverseas InvestmentOverseas InvestmentOverseas Investment

FII inflow into Indian stocks crosses $7

bn

The investment by overseas investors into

Indian stock market since the beginning of 2013

has crossed USD 7 billion mark, out of which

more than USD 3 billion were pumped in the

month of February alone.

Foreign Institutional Investors (FIIs) infused a

net amount of USD 3.23 billion (about Rs 17,211

crore) during February, taking the total for 2013

so far to USD 7.29 billion (Rs 39,270 crore ) for

Indian stocks.

Market analysts attributed strong FII inflows to

signs of easing interest rates by the Reserve

Bank and the subsequent impact of improved

liquidity position.

Additionally, a slew of measures taken by the

government, including the postponement of

GAAR (General Anti Avoidance Rules)

implementation by two years to April 1, 2016

and partial decontrol in diesel prices have also

attracted foreign investors.

During February, FIIs were gross buyers of

shares worth Rs 34,298 crore, while they sold

equities amounting to Rs 17,087 crore,

translating into a net investment of Rs 17,211

crore (USD 3.23 billion), as per data available

with market regulator Sebi.

Foreign fund houses also infused Rs 1,249 crore

(USD 234 million) in the debt market in

February. This takes the overall net investments

by FIIs into debt markets at Rs 4,196 crore (USD

785 million) so far this calendar year.

"FIIs have been betting high on Indian equities

since last six-seven months and reform

measures taken by the government has further

boosted the sentiments," Wellindia Executive

Director Hemant Mamtani said.

"Besides, FIIs have been infusing money into

the Indian market on account of change in RBI's

monetary policy that have added liquidity to the

system. This liquidity will help in growth of the

country," he added.

FIIs bought equities worth USD 24.4 billion in

2012, about USD 5 billion below record

purchases two years ago.


The stock market barometer Sensex has gained

58 points so far this year to end at 19,484.77

points on Friday.

As on February 8, the number of registered FIIs

in the country stood at 1,761 and total number

of sub-accounts were 6,333.

http://www.financialexpress.com/news/fii-

inflow-into-indian-stocks-crosses-7-

bn/1072186/0

India Inc’s investment abroad jumps

179% in January

Overseas direct investment by India Inc soared

by 179 per cent in the month of January to

$3.303 billion against $1.184 billion in the year-

ago period.

This investment comes even as Indian

companies are holding back investments in the

country due to adverse demand conditions,

both in the domestic and overseas markets.

Overseas investment by Indian companies is in

the form of equity, debt, and guarantees issued.

The big ones

Among the big overseas investments made by

Indian companies in January 2013 include:

Bharat Petroresources Ltd ($439 million), Cox &

Kings India ($249 million), Essar Steel ($155

million), Tata International ($128 million), and

Videocon Oil Ventures ($127 million).

Downturn in overseas markets may be

prompting Indian companies to pick up

overseas assets at a relatively cheaper

valuation, said a banker.

Indian companies' overseas investment in the

first 10 months of the current financial year

have been about $3 billion lower, aggregating

$23.325 billion ($26.468 billion).

The peak overseas investment in the current

financial year was in the month of June when

Indian corporates made investments

aggregating $3.532 billion.

http://www.thehindubusinessline.com/todays

-paper/tp-money-banking/india-incs-

investment-abroad-jumps-179-in-

january/article4390743.ece

FDI inflows can grow ten-fold, onus on

govt to get that done: Experts

Foreign investors see tremendous growth

opportunities in India and can infuse here FDI

worth about USD 250 billion a year, but they

want a guarantee for a progressive and

investment friendly policy framework, a top


management guru has said.

"If we want to take the FDI from the current

USD 20-30 billion to about USD 250 billion a

year, the investors making this investment

would need to see the progress that has been

made to guarantee him growth," MIT Sloan

School of Management's Deputy Dean S P

Kothari told PTI.

"The investors would ask for a policy framework

that is progressive and investment friendly,"

Kothari said here ahead of Citi-MIT Sloan

Symposium.

Talking about India's growth potential, Pankaj

Vaish, MD and Head of Markets at Citi South

Asia, said that India can think of growing FDI to

over ten times of the current level.

"There are opportunities in areas like

manufacturing and food processing, where FDI

can help in containing inflation. We need to

imbibe the global best practices which we can

learn from global corporations who would bring

in this FDI.

"It is not merely about the foreign money, but

the access the money gets in terms of better

products and services. FDI worth USD 25 billion

is good, but minuscule when compared to the

size and opportunity of India. Our goal should

be 8-10 times of the current level of FDI

investment," Vaish said.

"I believe we should aim for 20 uninterrupted

years of around 10 per cent GDP growth. It

should be our single-minded goal as a nation,"

he added. Kothari said that there is a

tremendous fascination about India among the

global investors.

"India offers many opportunities for rest of the

world, the first and foremost being its huge

talent pool that is one of the best in the world

and very well trained," he said.

"Those who think of India as an investment

destination, also think of thse benefits. When

they taste india, they say it is phenomenal in

terms of growth opportunities on many

dimensions," Kothari said.

However, there are other dimensions where

they feel that things could have been better and

those are the areas where leaders and

policymakers need to work, he added.

"India has made great strides in becoming more

open and more investor friendly, but there still

remains areas where progress has not been of

desired levels," Kothari said.

"India needs to show that it has overcome the


hurdles and there would not be roadblocks for

the investments being committed, as what we

are talking about is an investment of USD 200-

250 per person," he added.

http://www.financialexpress.com/news/fdi-

inflows-can-grow-tenfold-onus-on-govt-to-get-

that-done-experts/1071016/0

FIIs buy Sensex shares worth over $5 bn

in Oct-Dec qtr

Foreign institutional investors (FIIs) have raised

their exposure to 29 Sensex companies, with

purchase of shares worth an estimated amount

of $5 billion, in the quarter ended December 31,

2012.

The FII holding declined in only one blue-chip

company Hero MotoCorp during the October-

December 2012 quarter, showing the

shareholding pattern of 30 Sensex companies.

Most of the foreign entities trade in Indian

stocks through FII route and market analysts

said the overseas investors appear to have been

enthused by the stability in the equity market

and reform initiatives taken by the government

during the quarter.

As per the current market value of the Sensex

companies, FIIs are estimated to have

purchased shares worth about Rs 26,335 crore

(USD 5 billion) in 29 Sensex companies during

the last quarter.

At the same time, the FIIs are estimated to have

sold shares worth about Rs 129 crore (USD 24

million) in one Sensex company - resulting in a

net investment of over Rs 26,207 crore (USD

4.89 billion) in all the Sensex firms together.

FIIs infused a net amount of more than Rs

46,000 crore in the entire Indian stock market in

October-December quarter on the back of a

slew of reforms initiated by the government,

pushing the broader market Sensex to surge

664 points, or 3.5 per cent, during the period.

Among the Sensex firms, FIIs raised their stake

in HDFC, HDFC Bank, Reliance Industries,

Infosys, Wipro, ICICI Bank, Larsen & Toubro, SBI,

Cipla, GAIL, BHEL and Mahindra & Mahindra

during three months ended December 31, 2012.

Besides, they also increased their holdings in

Sun Pharma, ITC, HUL, Hindalco, Jindal Steel &

Power Ltd, Maruti, Bajaj Auto, ONGC, GAIL, Tata

Group firms -- Tata Power, Tata Motors, Tata

Steel and TCS -- Bharti Airtel, Dr Reddy's

Laboratories, NTPC and Coal India in the quarter

under review.

Interestingly, shareholding of overseas


Trade NewsTrade NewsTrade NewsTrade News

institutional investors in HDFC has risen to

73.17 per cent--the highest level in nearly seven

years- up from 68.72 per cent at the end of

previous quarter. Incidentally, largest rise in FII

ownership was also recorded by HDFC.

After HDFC, largest rise in FII ownership was

recorded by auto maker Mahindra & Mahindra

followed by Maruti.

In Mahindra & Mahindra overseas investors

hiked their stake by 2.86 percentage points to

32.86 per cent at the end of December quarter,

wherein their holding rose by 2.68 percentage

Scotland eyes life sciences, renewable

energy to boost trade

Scotland sees bilateral trade with India growing

significantly as there is huge untapped potential

in the areas of life sciences, ICT, renewable

energy sector among others.

Scottish Development International, the

international economic development arm of the

Scottish Government, has announced the

opening of its office in Hyderabad. This will be

its third office in India after Delhi and Mumbai.

points to 23.13 per cent in Maruti.

FII raised their holding in Bajaj Auto from 15.11

per cent to 17.04 per cent in the October-

December quarter.

In contrast, FII reduced their stake marginally in

Hero MotoCorp from 32.34 per cent during July-

September quarter from 31.99 per cent in

October-December quarter.

http://www.financialexpress.com/news/fiis-

buy-sensex-shares-worth-over-5-bn-in-octdec-

qtr/1072174/0

Anne MacColl, Chief Executive Officer, SDI, said,

“The opening of our new office in India and

entry into South India reinforces our

commitment to the market and region in

particular. This will also help accelerate bilateral

trade and potential for collaborations between

Scottish and Indian companies.”

Mark Dolan, Country Manager of SDI said,

“There has been a healthy increase in trade

between India and Scotland in the last decade.

This can get bigger as more companies work

together. There is increasing interest in


companies on both sides to partner and work

together.” A high-powered ministerial

delegation from Scotland headed by the

Industries Minister is likely to visit India in the

fourth quarter of 2013, he said.

IT companies such as Wipro, TCS, Axsys

Technologies have made Scotland their base to

work in the region and many others have

evinced interest as it serve as an ideal base to

cover the European region, they felt.

The renewable energy sector is where several

of the Scottish companies are keen to share

their expertise and know-how. “Already there is

partnership at the Central Ministry level and we

hope this will get much bigger,” they stated.


-paper/tp-others/tp-states/scotland-eyes-life-

sciences-renewable-energy-to-boost-

trade/article4401182.ece

India tops list of skilled migrants to

Australia

In 2012, India topped the list of nations with

skilled employees ‘Down Under’, said Lachlan

Strahan, acting Australian High Commissioner.

With 30,000 migrants, Indians constituted a

fifth of all the migrants to Australia last year, he

looking at skilled employees from a wide range

of professionals as well as business people.”

In Hyderabad as part of the Oz Festival events

during the weekend, Strahan said tourism

between the two countries was growing along

with bilateral trade. While 190,000 Australians

travelled to India last year, about 160,000

Indians visited Australia. In answer to a

question, he said there were a total of 4.3 lakh

Indians in Australia.

The Oz Festival, which was launched on October

16, 2012, with a glittering show in Delhi’s

Purana Qila, has run over a hundred events in

18 locations in an effort to go beyond ‘Cricket,

Commonwealth and English (common

language)’ and create more bridges between

the two nations, said David Holly, Consul

General for South India. The festival, the largest

cultural event held in India, ends with a concert

in New Delhi.

The two-way trade touched $20 billion last

year, with India’s contribution being $11 billion.

The expectations are that it will double in the

next five years. Australia came up with a White

Paper in 2012, which puts India as one of the

top five countries for trade and relations.



-paper/tp-others/tp-states/india-tops-list-of-

skilled-migrants-to-

australia/article4383470.ece

India-Uruguay to explore opportunities

in iron ore mining and steel

India and Uruguay have signed a letter of intent

(LoI) to explore investment opportunities in iron

ore and steel sector. The alliance will also

encourage exchange of technical know how in

iron ore and steel related raw materials.The LoI

was signed between D R S Chaudhary, union

steel secretary steel and Mr Roberto

Kreimerman, Uruguay's minister for industry,

energy & mining during a visit by union steel

minister Beni Prasad Verma.

The steel minister met Uruguay president, Mr.

Jose Mujica in Montevideo on February 6, 2013.

The two leaders discussed steps to improve co-

operation in the mining sector between the two

countries and increase bilateral trade turnover

in the coming years.

The minister later met Mr. Roberto Kreimerman

and discussed various aspects of joint

exploration and production of minerals in the

Latin American country. Speaking on the

occasion Mr Verma said, "There is a huge

potential for mining of iron ore, granite, gold

and diamond, which can be explored by Indian

companies in Uruguay. I believe the two

countries can collaborate to utilise each others

strength in areas of mineral exploration."

The steel minister invited the Uruguayan trade

and industry to participate in the Indian Trade

Exhibitions and conduct roadshows for more

joint ventures, transfer of technology and

inviting Indian investment for setting up

production facilities in Uruguay for exports to

other Latin American countries.

The visit of the Indian delegation was successful

in establishing a firm base for mineral

exploration and production by Indian firms in

Uruguay. Apart from the minister and steel

secretary, other delegation members included

U P Singh, joint secretary, C S Verma, chairman

and managing director, NMDC and other senior

steel ministry officials.

http://articles.economictimes.indiatimes.com/

2013-02-07/news/36972411_1_iron-ore-

mineral-exploration-uruguay-president

India-France bilateral trade touches

€7.6 billion

The India-France bilateral trade had grown by 6


Sectoral NewsSectoral NewsSectoral NewsSectoral News

per cent to €7.46 billion.

The European country is the 9th largest foreign

investor in India with a cumulative investment

of approximately $3 billion during the period

April 2000 to June 2012.

Stating this Bradley Joslove of the India Desk

and representing the Business Law Firm,

Franklin from Paris said India is the 13th largest

foreign investor in France in terms of project

numbers.

Speaking at an interactive meeting organised by

'India may be among top three aviation

markets by 2020'

India is likely to become one of the top three

aviation markets in the world by 2020 provided

the strong passenger growth clocked in recent

times continues, a Ficci-PwC report said today.

"Indian civil aviation sector has continued to

experience high passenger growth, and if the

trend continues it could rank among the top

three aviation markets in the world by 2020," it

said in the report titled 'Indian

Aviation:Spreading its Wings'.

the Federation of Andhra Pradesh Chambers of

Commerce, Joslove, who is Head-New

Technologies Department at the Law Firm said

there was a growing and wide-ranging

cooperation in areas such as trade and

investment, culture, science and technology

and education.

http://www.thehindubusinessline.com/industr

y-and-economy/economy/indiafrance-

bilateral-trade-touches-76-

billion/article4404584.ece

Domestic traffic in India saw a Compounded

Annual Growth Rate (CAGR) of 17 per cent

between 2009 and 2011.

"A strong market growth rate coupled with

infrastructure expansion will help the sector

back on its feet as the economy recovers," it

said.

The report also said this would be a good time

for global players to enter India and explore the

potential of a large underserved market.

"However, volatility in fuel prices combined

with the highest tax on aviation turbine fuel and


other national policy related issues continue to

challenge the sector's growth," he said.

The recent increase of FDI up to 49 per cent in

civil aviation might also not result in substantial

increase in investment since it has been

imposed on the aggregate of FDI and FII.

The report also recommends a hike of 26 per

cent cap on FDI in defence as it has failed to

attract foreign investment.

India has received only USD four million in the

10 years since FDI was allowed in the defence

sector, while the entire economy has received

over USD 180 billion during the period.

http://www.financialexpress.com/news/-

india-may-be-among-top-three-aviation-

markets-by-2020-/1071029

Luxury market may touch USD 15 bn in

2 years: Study

Despite continued global economic slowdown,

the luxury market in India is pegged to grow at

25 per cent in 2013 till 2015 and likely to touch

USD 15 billion from the current level of USD 8

billion, according to a joint study by Assocham

and Yes Bank.

The luxury market is poised to expand three-

fold in next three years and the number of

millionaires expected to multiply three times in

another five years, Assocham Secretary General

D S Rawat said while releasing the study here.

"Increase in spending is anticipated across the

country and beyond the walls of the metros,

with increasing brand awareness among the

youth and purchasing power of the upper class

in Tier II & III cities in India where luxury cars,

bikes and exotic holidays and destination

weddings are no strangers," he said.

Indian luxury market is projected to reach USD

14.7 billion in 2015.

The number of ultra high net worth households,

with a minimum net worth of Rs 25 crore is

expected to triple to 2.86 lakh in the next five

years with a five-fold increase in their net worth

to Rs 235 lakh crore, the study said.

These projections along with the increasing

price parity in the luxury products with other

international destinations like Singapore or

Hong Kong, and customised products offerings

would indicate that the luxury market in India

would evolve quickly, it added.

The private equity (PE) investments in the

luxury sector for the last three years, from

January 2009 to August 2012 have been less


than a USD 1 billion compared to the USD 35

billion total PE investments during this period.

With the luxury market expected to grow at

over 25 per cent year on year, PE investments in

the luxury segment are expected to increase

and support the enhanced size of the Indian

luxury market.

http://www.financialexpress.com/news/luxur

y-market-may-touch-usd-15-bn-in-2-years-

study/1069778/0

World keenly watching India’s solar

power initiatives: Farooq Abdullah

The world is looking to India for ideas to

capture solar energy to fuel development,

according to Farooq Abdullah, Union Minister

for New and Renewable Energy.

He said this while inaugurating the State’s off-

grid rooftop solar power programme in which

10,000 households are involved initially.

Solar is Future

Agency for Non-Conventional Energy and Rural

Technology (ANERT), Kerala, an autonomous

body under the department of power, is

spearheading the programme.

Many of the countries are willing to join our

efforts at harnessing this giant source of energy,

the Union Minister said. Scientists across the

country and outside are working on ways to

store solar energy in a meaningfully economical

manner.

“We’re all hoping that we’ll soon succeed in

finding a solution,” Abdullah said. This is a

challenge we have to take head-on. “Solar

energy is out future. It is rather the future of

the world.”

He expressed happiness that all States are

working hard towards this. Rajasthan has gone

a long way forward.

Foreign Coal

The Jawaharlal Nehru Solar Power Mission aims

to generate 20,000 MW of grid-connected solar

power by 2022. Abdullah said that adequate

availability of power has implications for not

just the general economy and industry but also

for jobs.

And this is exactly why the country has been

sourcing expensive coal from origins as South

Africa, Australia and Indonesia. “We must focus

on trapping clean energy not just from sun but

also from wind, geothermal sources and even

sea.”


This would help reduce our reliance on fossil

and other non-renewable energy sources and

temper global warming threat. In his address,

Chief Minister Oommen Chandy said that

rooftop solar power programme was the most

ideal solution for the State.

Kerala used to be a power-surplus State in the

1970s and early 1980s but environmental

concerns have reversed the situation. This is

because hydroelectric power stations have

since come to be associated with massive

implications for the environment.

http://www.thehindubusinessline.com/news/

world-keenly-watching-indias-solar-power-

initiatives-farooq-abdullah/article4404353.ece

Manufacturing sector will spend more

on IT this year: Gartner

Manufacturing and natural resources

companies will spend Rs 40,800 crore on IT

products and services in 2013 to improve

productivity and competitiveness. This is a 9.1

per cent increase over 2012 revenues of Rs

37,400 crore. This forecast includes spending by

manufacturers and natural resource companies

on internal IT (including personnel), hardware,

software, external IT services and

telecommunications, according to research and

analyst firm Gartner Inc.

“Despite India’s slowing economic growth,

manufacturing and natural resources remain

large and important sectors in the Indian

economy, and they are attracting increased IT

spending to improve productivity and

competitiveness,” said Ken Brant, research

director for manufacturing at Gartner. The

telecommunication, which remains the biggest

spender in the manufacturing and natural

resources sector, is forecast to reach Rs 13,200

crore in 2013.

Meanwhile, software is achieving the highest

growth rate amongst the top level IT spenders

and is forecast to exceed 15 per cent in 2013.

Gartner expects consulting services to grow by

more than 22 per cent in 2013 alone as

manufacturers are looking for implementations.

http://www.thehindubusinessline.com/industr

y-and-economy/info-tech/manufacturing-

sector-will-spend-more-on-it-this-year-

gartner/article4386428.ece


News RoNews RoNews RoNews Roundundundund----UpUpUpUp

Indian consumers most confident

globally in Q4, 2012: Nielsen

Indians have emerged as the most confident

consumers globally in the fourth quarter of

2012 despite job security and economy

remaining their biggest concerns, in a study by

provider of market information and insights

Nielsen.

Consumer confidence in India increased two

points to 121 in Q4, 2012 from the previous

quarter. India has picked up on levels of

optimism from Q2 and Q3, where it was steady

at 119 points, though lower from Q1, when

confidence levels were at 123 points, Nielsen

said in a statement.

"The aspirational Indian is willing to upgrade,

while more value conscious consumers are

more responsive to deals and buying in bulk to

keep expenditure buoyant," Nielsen India

Region President Piyush Mathur said.

According to the survey conducted between

November 10 and 27, 2012, consumer

confidence declined in 33 countries and

increased in 19 countries. It polled more than

29,000 online consumers in 58 countries in

Asia-Pacific, Europe, Latin America, Middle East,

Africa and North America.

India was followed in second and third by

Philippines (119) and Indonesia (117) in the

consumer confidence index. Crisis-ridden

Greece came last with its consumer confidence

index at 35.

As per the latest survey, 54 per cent of

respondents in India indicated they would put

spare cash into savings.

"Thirty-nine per cent said they would invest in

new technology and products, while 36 per cent

reported they would spend spare cash on new

clothes," it added.

When it came to buying things they wanted and

needed, 55 per cent of Indian respondents felt

it was a good time in Q4. Four in five online

consumers (81 per cent) indicated they have

changed their spending habits to save on

household expenses.

"The fourth quarter highlights the willingness of

people to spend during the holidays and festival


season...The optimism, though, is tempered

with a judicious controlling of household and

discretionary expenses in order to balance the

household budget," Mathur said.

The survey showed that job security and state

of the economy continued to be the top

concerns for Indian respondents.

"For one in five respondents (20 per cent), job

security is the biggest concern in Q4, down two

points from Q3 (22 per cent). The state of the

economy is the biggest concern for 11 percent

of respondents, down by three points from Q3

(14 per cent)," it said.

Yet, globally 76 per cent of online consumers in

India and Philippines were the most optimistic

about job prospects in the next 12 months,

followed by online consumers in Thailand (70

per cent) and China (70 per cent), Nielsen said.

http://www.financialexpress.com/news/india

n-consumers-most-confident-globally-in-q4-

2012-nielsen/1069771/0

DISCLAIMER

This newsletter is a compilation of news articles

from various business e-newspapers and in no

way is an endorsement or reflection of

Ministry of External Affairs views.

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date – february 05 - 11, 2013 issue no. 511 · date – february 05 - 11, 2013 issue no. 511 1...

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