India created 64,370 jobs in the last four years owing to outsourcing activity. It has not only grabbed one of the largest number of offshore projects in the world, but remains one of the most attractive locations for conducting offshore business activity in the South East Asian region, jut behind Philippines.
Tom Carroll, Director-Corporate Research (EMEA), Jones Lang LaSalle said that international corporations are increasingly focused on productivity, operational efficiency and future scalability, rather than straight cost-saves in the short term. “India will need to ensure it reflects these concerns if it is to retain its leading position,” he said.
According to research by Jones Lang LaSalle, India maintained the first position in terms of top 10 locations for FDI in shared service centres from 2003 to 2011. Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India, pined that while still hitting the high notes on the offshoring market, India will need to work hard to maintain its edge.
India has been favoured as a top destination for offshoring owing to a large talent pool and low costs. Puri raised concerns about competition from markets like China and Indonesia and added that they have been advising their clients on effective differentiation strategies that are designed to help them maintain the edge.
Read more: Business Standard
Green home certification: The requirements and benefits
The concept of green homes – meaning environmentally sustainable residential spaces – is still an emerging trend in India, but awareness about this exciting new way of life is rapidly gaining ground.
Buildings account for almost 40% of the country’s overall energy consumption, and more than 60% of all buildings being developed in India are residential projects. It certainly requires a leap of intelligence to understand where we are headed at this rate, but the Indian market response for green residential buildings is increasing with every passing year.
Not surprisingly, Pune – the Oxford of the East – has become one of the leaders of this new movement. Thanks to the city’s high intellectual acceptance quotient, it is fast emerging as Maharashtra’s primary ‘green living’ city. This is a proud fact for Pune, since accepting green homes as a way of life is not something that is geared to come naturally to Indian home buyers One reason for this is lack of a clearer understanding of green homes; another is the fact that such homes are perceived to be a lot more expensive.
Read more: Money Control
Services to Drive Office Space Occupancy
India’s service sector is growing at a strong 8.5% growth rate which will drive the demand for commercial real estate in the second half of the current year (2012-13), say real estate research firms. The service sector occupied 70% of office space in 2011 and the pace is likely to continue this year.
Mumbai, NCR-Delhi, Bangalore, Chennai, Hyderabad, Pune and Kolkata saw a significant growth in office space absorption, with information technology (IT), IT-enabled services and banking, financial services and Insurance (BFCI) segments claiming most of the space occupied.
“The demand for commercial real estate moderated in the first half of 2012 as office occupiers generally remained cautious about their expansion plans. However, the economy’s service sector is recording strong growth and is advancing at a rate of 8.5%. This indicates that a major slowdown in office real estate demand is not likely to occur. The service sector generates the highest demand for office space in the country,” said Subash Bhola, senior manager at Research at Jones Lang LaSalle India.
Read more: The Times of India
Almost 70% of our future profits will come from realty biz: Jeh Wadia
Last April, Wadia Group Chairman Nusli Wadia swapped the roles of his two sons giving younger son Jeh Wadia the onus of turning around the fortunes of the group’s flagship company Bombay Dyeing, which has a sales turnover of Rs 2,230 crore.
As the Managing Director of Bombay Dyeing, Jeh Wadia plans a re-launch of the textile division next year. However, the cash cow is the company’s real estate division, Bombay Realty, which going forward will contribute to a majority of the profits.
The younger Wadia scion is also heading the turbulent aviation business with Go Air, the low-cost airline funded by the Wadia family.
Juggling between different businesses is challenging especially with slowdown in consumer demand and increase in costs. In an interview to Business Line, Jeh Wadia discusses some of the issues facing Bombay Dyeing and Go Air and his outlook for both the textile and aviation business. Excerpts.
Is Bombay Dyeing transforming itself from a textile company to a real estate company?
Read more: Business Line
Road projects to connect remote parts of the city
The Commonwealth Games gave Delhi what it could not get in almost 25 years after the Asian Games in 1982.
The run up to the 2010 games saw agencies coming together and building about 20 new roads and flyovers that not only catered to the specific demand of the Commonwealth Games but also helped cut down on travelling time in various parts of the city.
After a two year lull, the government is now taking road infrastructure to another level. While Commonwealth Games saw several flyovers in south and east Delhi, where athletes and dignitaries moved during the games, senior PWD engineers said efforts are being made to improve infrastructure in other parts of the city.
“Several projects are now coming up in west, northwest and north Delhi. The project to make 17-km stretch outer ring road between Vikaspuri and Wazirabad is one such project,” said a senior PWD engineer.
Construction of an elevated road over the Najafgarh drain to connect the western most part of Delhi to Delhi University in north is another such project.
Read more: Hindustan Times
Govt plans 10-15 greenfield airports
Giving a push to aviation infrastructure development, Government is planning to build 10-15 greenfield airports and modernising 50 others in the non-metro cities over the next few years.
“About 50 non-metro airports are being modernised within the next two years and overall 10-15 new greenfield airports are being planned,” Civil Aviation Minister Ajit Singh told reporters on the sidelines of the 49th Conference of Directors General of Civil Aviation of Asia-Pacific region here.
Maintaining that the civil aviation sector in India was witnessing an annual growth of nine per cent, he said, “We expect a double digit growth in air traffic in the next few years.”
Read more: Indian Express
India Opens Its Retail Sector, Why The IT Guys Should Rejoice
A few days ago, New Delhi announced a policy opening India’s notoriously fragmented and inefficient retail sector for a 51% foreign ownership in multi-brand retail (think Wal-Mart) and 100% ownership in single-brand retail (think Niketown). This was political football at its finest – retail giants like Tesco (UK), Carrefour (France) and Wal-Mart (US) versus the flag-waving, khadi-wearing politicians of all stripes dueling it out against a backdrop of slowing GDP growth and India’s diminished rating as a destination for global investment. Retail is the 2nd largest employment sector in India, after agriculture, and employs 44 million people; hence it is a formidable voting bloc that no elected official can afford to ignore.
David vs. Goliath
The central argument in this battle has been framed in fairly classic terms. According to the backers of the policy, foreign corporations like Wal-Mart will bring in much needed expertise to build and upgrade India’s non-existent food supply chain and bring down prices by spurring competition. In the minds of naysayers, this is yet another instance of powerful corporate entities stomping on the livelihood of the small guy running the neighborhood kirana store. Out of the 28 States and 7 Union Territories in India, only 10 have agreed to cautiously proceed with this proposal. Unlike in the US, States’ Rights in India are typically not the fodder for political pundits or the evening news, except in this case where the state governments have uncharacteristically dug in and are openly resisting the Central Government.
Read more: Forbes