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MOTLEY COLLECTION OF BUSINESS AND ECONOMIC NEWS |
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 Foreign airlines may ply Indian skies
The government may finally allow foreign airlines to acquire up to 26% stake in domestic passenger airlines. The foreign direct investment limit in domestic carriers might also be hiked to 74% from 49% now. According to government functionaries, the civil aviation ministry has mooted a proposal to this effect. They said the move had the backing of the finance and the commerce & industry ministries.
Civil aviation minister Praful Patel had recently indicated that foreign airlines might be allowed in domestic cargo operations. The government sources, however, said there would be managerial and operational restrictions on foreign airlines. “We are looking at ways to allow more foreign investment into domestic carriers,” a senior source said.
On the other hand, the present restriction on the number of foreign members on an airline board to a third may be relaxed. Under the new plans, a foreign airline can engage with an Indian carrier as an investor.
It will, however, have no control over the running and the management of the domestic carrier. The government had banned foreign carriers from investing in Indian airlines a decade ago fearing they would seriously threaten state-owned carriers. Further, it was also seen as a security threat.
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 Billionaires richer, Russia, India rise – Forbes
The world’s richest are getting younger and richer with more Russians and Indians cropping up among the 946 people on Forbes magazine’s 2007 billionaires list. The number of billionaires is 19 percent higher than last year when there were 793, and their total net worth grew 35 percent to $3.5 trillion, the magazine said.
“This is the richest year ever in human history,” said Forbes Chief Executive Steve Forbes. “Never in history has there been such a notable advance.” Among those joining the list are Howard Schultz, the founder of Starbucks, and former Walt Disney boss Michael Eisner. Microsoft Chairman Bill Gates was the richest man for the 13th straight year, with $56 billion, followed by Warren Buffett of Berkshire Hathaway, with $52 billion.
Russia climbed to No. 3 in country rankings with 53 billionaires, two less than Germany, which has long held the runner-up spot in the billionaire stakes behind the US. But the total worth of the Russians surpassed the Germans, at $282 billion versus $245 billion.
In Asia, India had the highest number of billionaires, overtaking Japan, which for two decades had held the region’s top spot. India had 36 billionaires worth a total $191 billion while Japan’s 24 billionaires were worth $64 billion.
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 India most preferred business locale: AT Kearney report
The latest global services location index by AT Kearney shows India continues to be the best place to start a business. That is what the latest global services location index by AT Kearney indicates. And the people of India seem to have given it its prime advantage. The report says the large, educated labour force with relevant work experience gives India an unbeatable advantage. India also ranks favourably by way of financial attraction too.
But even though the wage cost in India is not high, India’s tax cost is one of the highest in the 50 countries surveyed. Infrastructure cost is also one of the highest in India. India ranks low in terms of its business environment due to its low infrastructure quality and regulatory hurdles. So that might keep investment elusive.
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April 2007
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