Posts Tagged ‘Mumbai’

India’s Wealth Lies in Its Cities

It was once believed that India lives in its villages.

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Now it is clear that India’s wealth lies in its cities, or more specifically, Mumbai.

 

India's Wealth Lies in Its Cities

A study conducted by Delhi-based SMC Global classified companies geographically on the location of their registered offices.

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It reveals that Mumbai-registered companies account for 36.28% of the total BSE 500 market cap.

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Some of the prominent names based out of Mumbai are Reliance Industries, L&T, HDFC and SBI.

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Also, out of the market capitalisation ascribed to Maharashtra which has the highest market capitalization among the states — more than 90% originates from Mumbai.

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In fact, Mumbai and six other cities account for 85.71% of the total market capitalisation of BSE 500.

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With Delhi NCR (National Capital Region, which includes satellite cities such as Gurgaon and Noida along with the capital) contributing 27.82%.

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After the financial and political capitals, state capitals take the fore.

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Bangalore lays claim to 7.10%,

Hyderabad to 4.86% and Kolkata accounts for 3.83%,

while Ahmedabad and Chennai account for 3.35% and 2.47%, respectively.

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On a state-wide basis, five states in combination with Delhi NCR and Maharashtra account for 94.20% of the total market cap.

A total of 66.17% of the index’s market cap can be traced to Maharashtra and Delhi NCR.

While the latter accounts for 38.35%, Delhi accounts 27.82%.

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Karnataka accounts for 7.74%, Gujarat, 7.48%, Andhra Pradesh is at 4.95% and Tamil Nadu at 4.02%, while Bengal has 3.83%.

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Though the big Indian companies have a pan-India presence with factories or plants located across the country, they tend to have registered offices in metros.

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That is because of the ease of operations and presence of other corporate houses, suggested the study.

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“The traditional metro cities have accumulation advantage.

Its ultimately the money which brings in more money.

As the Indian economy keeps evolving, tier-2 and tier-3 cities may catchup gradually, to bring-in more equitable distribution of wealth across the country.”

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…said Jagannadham Thunuguntla, equity head at SMC Capitals.

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Mobile Number Portability Not Before Dec 31!

Mobile number portability not before Dec 31: DoT

The Government of India extended to December 31 implementation of mobile number portability, a facility allowing subscribers to retain their numbers even after changing service providers.

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However, the 100-day delay in the planned implementation of the MNP is credited to operators‘ inability to upgrade their network.

On top of that the delay on part of regulator TRAI to come out with tariff for the service.

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On the other hand, this required customization and upgradation of the existing network to be capable of providing the MNP service while certain technical and commercial issues related to it are also being resolved.

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Additionally, it is said that it requires considerable time and effort hence it has been decided by the Department of Telecom to extend the date of implementation of MNP in Metro Category A service areas to December 31, 2009 in the first phase.

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Moreover, it is said that the service is expected to be available by end of 2009 to begin with in Delhi, Mumbai, Kolkata, Maharashtra, Gujarat, Andhra Pradesh and Tamil Nadu.

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The Department of Telecommunications had issued guidelines for its implementation in the country in August last year.

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Can India run ahead of China?

Can India run ahead of China?

Can India run ahead of China?

Indians have for long suffered from an advanced case of China envy. It has never been just a question of higher growth rates in China. Visitors from India have also inevitably come back with breathless tales about the new downtown Shanghai, the magnetic levitation trains or the new highways being built across that country.

However, the World Bank said on Monday that India is expected to grow at a slightly faster pace than China in 2010. And the two economies will expand at around the same rate in 2011.

Is this a turning point in the long race between the hare and the tortoise?

There is little doubt that the gap between the rates at which the two emerging giants are growing has started narrowing.

China used to grow around 3 percentage points faster than India earlier this decade. That gap has now narrowed to the point of insignificance in the past couple of years, even without discounting China’s dodgy macroeconomic numbers.

This change is likely to be enduring for several reasons.

First, China is more exposed to the vagaries of the world market because of its high trade intensity. A Japan-style secular slowdown in the US and Europe over the next decade will hurt China more than India unless China moved beyond its admittedly successful mercantilism.

Second, the foreign direct investment boom in China since the mid-1990s pushed up its investment rate, enabled technology transfer and plugged the nation into global supply chains. All this took China closer to the global efficiency frontier, but it now seems that diminishing returns are setting in. Future growth will have to depend more on domestic demand and local innovation, which means that China will have to change its growth model.

Third, China is a fast ageing society, thanks to a one-child policy. This demographic change will increase dependency ratios and social costs.

India seems to be on a stronger wicket right now, thanks to its higher dependence on domestic demand, its vibrant entrepreneurial culture and a young population. But that should not mean that catching up or overtaking China is inevitable.

The joker in the pack is the quality of national leadership.

India needs to do several things if it has to realistically overtake China in the next decade: economic reforms, better infrastructure, internal security check, less bureaucracy and intensive skill development, for example.