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MOTLEY COLLECTION OF BUSINESS AND ECONOMIC NEWS |
 Global manufacturers to step up R&D activity in India
Global manufacturers, currently selling their products in India, are expected to significantly increase their research and development activity in the country over the next three years, according to a report by business advisory firm Deloitte Touche Tohmatsu (DTT).
The report, ‘Innovation in Emerging Markets’, revealed that of the companies that sell their products in the country, 51 per cent expected their sales revenues to increase substantially over the next three years though many of them do not tailor their products for India.
Among the firm surveyed, 23 per cent said they had R&D operations in India, while another 12 per cent said they were planning to launch such operations.
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 India’s real estate to touch $366 billion by 2010
India’s total stock of commercial real estate is expected to grow by $66 billion to be worth $366 billion by 2010, says a report by Deutsche Bank. A large part of this is expected from growth in organised retail (India is among the world’s 10 largest retail markets with an estimated turnover of $250 billion). Given this, by the end of 2008, nearly 220 shopping centres in Tier-1 and Tier-2 cities are likely to have been set up with new shopping formats, boosting organised retail trade. In its report, Deutsche Bank Research has said the opening up of the retail market to foreigners could reinforce this trend.
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 Small sector, big strides
India’s small-scale sector is growing in style. Production, productivity and exports are all on the upswing. Production clocked a growth of more than 16 per cent in 2004-05, as per the latest annual report of the Ministry of Small Scale Industry. Exports have grown at an even more impressive rate of 27.4 per cent in 2004-05, compared with the previous year. While production has been growing at an impressive rate, production per employee has risen equally fast. Since 1990-91, production has risen five-fold and productivity of employees three-fold.
Capital efficiency has also increased dramatically. In 1990-91, every Re 1 invested barely extracted Re 0.90 of production. In 2004-05, every Re 1 of investment by the small scale industry was churning out Rs 1.41 of output. And this figure has been rising steadily since 1996-97.
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September 2006
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