Tata Motors Wednesday said it is expecting over 50 per cent jump in the sale of its Ace family light commercial vehicles (LCV) in the current fiscal, on account of robust demand. This translates into upto 2.5 lakh units for sale.
"Last year, we sold about 1.6 lakh unit of our Ace family. This fiscal we are targeting upto 2.5 lakh unit, including exports," Tata Motors Head (Sales Commercial Vehicles) Sandeep Kumar told reporters here. Tata Motors will launch two light commercial vehicles - Venture and Iris - early next year.
The Ace family comprises light commercial vehicles Magic, Winger and Ace. These are manufactured at the Panth Nagar facility. The company launched a new variant of its Winger, priced between Rs 6.98 lakh- Rs 7.35 lakh (ex-showroom Delhi).
Wednesday, November 24, 2010
Airlines should maintain transparency in fares: Regulator
The aviation sector regulator has asked domestic airlines to maintain transparency in publishing fares across various categories.
'In order to maintain transparency in tariff publication, all the scheduled domestic airlines have been directed to furnish a copy of the route-wise tariff across their network in various fare categories, in the manner it is offered in the market, to Director General of Civil Aviation (DGCA) on the first day of every calendar month,' said a statement from the regulator.
The watchdog said that it had received 'reports of scheduled domestic airlines charging excessively high tariff for various flights across their network during the high demand period, causing lot of inconvenience to the travelling public and drawing adverse comments on air fares'.
Airlines would also be required to publish air fares on their websites or in newspapers.
'Any significant and noticeable change in the established tariff so filed with DGCA shall be reported to DGCA within 24 hours of effecting such changes,' the statement added.
'In order to maintain transparency in tariff publication, all the scheduled domestic airlines have been directed to furnish a copy of the route-wise tariff across their network in various fare categories, in the manner it is offered in the market, to Director General of Civil Aviation (DGCA) on the first day of every calendar month,' said a statement from the regulator.
The watchdog said that it had received 'reports of scheduled domestic airlines charging excessively high tariff for various flights across their network during the high demand period, causing lot of inconvenience to the travelling public and drawing adverse comments on air fares'.
Airlines would also be required to publish air fares on their websites or in newspapers.
'Any significant and noticeable change in the established tariff so filed with DGCA shall be reported to DGCA within 24 hours of effecting such changes,' the statement added.
Sensex sinks over 600 points on Korean hostilities, recovers
A benchmark index of Indian equities market slipped further into the red Tuesday, falling over 600 points in afternoon trade, as Asian markets were jittery on reports of North and South Korean soldiers exchanging fire.The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 19,841.42 points, fell 614 points or 3.08 percent to 19,342.69 points, from its previous close of 19,957.59 points.
The index, however, recovered in about 20 minutes, to rule 460 points lower at 19,497.17 points.
At the National Stock Exchange (NSE), the 50-share S&P CNX Nifty had also slipped 3.07 percent at 5,824.95 points.
Broader markets indices were in the red too, with the BSE madcap index ruling 2.32 percent lower while the BSE smallcap index moved down 2.98 percent.
All of the sectoral indices were in the negative. Realty, consumer durables and metal stocks were among the major losers.
South and North Korea exchanged artillery fire Tuesday soon after dozens of shells fired from the North struck a South Korean island near the countries' disputed western sea border.
The South Korean won tanked over four percent against the US dollar, indicating significant uneasiness in financial markets
The index, however, recovered in about 20 minutes, to rule 460 points lower at 19,497.17 points.
At the National Stock Exchange (NSE), the 50-share S&P CNX Nifty had also slipped 3.07 percent at 5,824.95 points.
Broader markets indices were in the red too, with the BSE madcap index ruling 2.32 percent lower while the BSE smallcap index moved down 2.98 percent.
All of the sectoral indices were in the negative. Realty, consumer durables and metal stocks were among the major losers.
South and North Korea exchanged artillery fire Tuesday soon after dozens of shells fired from the North struck a South Korean island near the countries' disputed western sea border.
The South Korean won tanked over four percent against the US dollar, indicating significant uneasiness in financial markets
Mobile telecom profits may dip due to stringent norms: COAI
Cellular Operators Association of India (COAI) Wednesday indicated that profits of mobile telecom industry may shrink further on account of strict subscriber verification norms and levy of charges on erection of cell towers by the state governments. Lack of infrastructure facilities in rural areas coupled with stringent norms of customer verification before providing services is a deterrent for mobile penetration in most parts of the country, COIA Director-General Rajan S. Mathews said.
Operators spend crores of rupees on customer verification process. Right now, activating one customer includes a minimum expense of Rs 600-700. Also, the state governments have started levying taxes on cell tower.
In Delhi, till recently they (state government) were charging 50,000 per tower. It has now further been enhanced to Rs 5 lakh. These are going to kill our profitability, Mathews said.
Some telecom operators are already incurring losses and the situation may further deteriorate with the new development, he said. "Net margins are currently at 8-10 per cent. This may drop by two-three per cent. Some operators are already in negative," Matthews said.
With the exception of a few companies, most of the operators reported dip in the net in Q2 this fiscal when compared to last year. Bharti Airtel Ltd, India's largest mobile-phone operator, reported a 27 per cent dip in net profit to Rs 1,660-crore in the second quarter earnings.
Similarly, Tata Teleservices Maharashtra Ltd's net profit of Rs 97 crore for the second quarter showed a decline of nine percent, compared to the Rs 107.9 crore net profit it earned in the corresponding period last year.
Last month, the dot draft norms, circulated in consultation with the Home Ministry, had asked all mobile operators to re-verify the documents of over 70 crore mobile connections in the country.
Recently, Mumbai police revealed that 60 pc of prepaid SIM cards were procured using fake documents in the city. The COAI has suggested to the government that the Unique Identification card should be set as bench mark for the customer verification.
"Government is trying to see what they can do. DOT and UID authority may coordinate in this regard for optimising the verification," Mathews said.
According to the data supplied by COAI, Rs 1,50,000 crore investments have been made into the industry so far, with a subscriber base of 700-million. India is one of the lowest-tariff countries. According to analysts, customer acquisition costs, due to Mobile Number Portability that is set to roll out in Haryana from November 25, are likely to rise as the acquiring operator (recipient) is unlikely to collect fees from the customer.
Edelweiss, a leading brokerage house, said (the recipient) will have to scrutinise the application and conduct the verification process at its own cost.
Operators spend crores of rupees on customer verification process. Right now, activating one customer includes a minimum expense of Rs 600-700. Also, the state governments have started levying taxes on cell tower.
In Delhi, till recently they (state government) were charging 50,000 per tower. It has now further been enhanced to Rs 5 lakh. These are going to kill our profitability, Mathews said.
Some telecom operators are already incurring losses and the situation may further deteriorate with the new development, he said. "Net margins are currently at 8-10 per cent. This may drop by two-three per cent. Some operators are already in negative," Matthews said.
With the exception of a few companies, most of the operators reported dip in the net in Q2 this fiscal when compared to last year. Bharti Airtel Ltd, India's largest mobile-phone operator, reported a 27 per cent dip in net profit to Rs 1,660-crore in the second quarter earnings.
Similarly, Tata Teleservices Maharashtra Ltd's net profit of Rs 97 crore for the second quarter showed a decline of nine percent, compared to the Rs 107.9 crore net profit it earned in the corresponding period last year.
Last month, the dot draft norms, circulated in consultation with the Home Ministry, had asked all mobile operators to re-verify the documents of over 70 crore mobile connections in the country.
Recently, Mumbai police revealed that 60 pc of prepaid SIM cards were procured using fake documents in the city. The COAI has suggested to the government that the Unique Identification card should be set as bench mark for the customer verification.
"Government is trying to see what they can do. DOT and UID authority may coordinate in this regard for optimising the verification," Mathews said.
According to the data supplied by COAI, Rs 1,50,000 crore investments have been made into the industry so far, with a subscriber base of 700-million. India is one of the lowest-tariff countries. According to analysts, customer acquisition costs, due to Mobile Number Portability that is set to roll out in Haryana from November 25, are likely to rise as the acquiring operator (recipient) is unlikely to collect fees from the customer.
Edelweiss, a leading brokerage house, said (the recipient) will have to scrutinise the application and conduct the verification process at its own cost.
(Manorama)
Gold, Silver hit all time highs on global cues
Surpassing earlier records gold prices touched a new peak at the bullion market here today on frantic buying by stockists and speculators on the back of bullish trend in overseas market.
The white metal, silver, also continued its record breaking spree on the fourth consecutive day, touching another milestone of Rs 43,000-mark due to highly speculative buying amidst continued industrial support.
Standard gold (99.5 per cent purity) soared by Rs 270 per 10 grams to end at Rs 20,505 from overnight closing level of Rs 20,235.
Pure gold (99.9 per cent purity) hardened by Rs 275 per 10 grams to finish at Rs 20,610, as against Rs 20,335 previously.
Silver ready (.999 fineness) rose by Rs 230 per kg to conclude at Rs 42,955 from Tuesday's closing level of Rs 42,725.
In New York, gold for December delivery jumped USD 19.80 to USD 1,377.60 an ounce on the Comex division of the NYMEX yesterday.
Silver for December delivery gained by 11 cents to USD 27.57 an ounce.
The white metal, silver, also continued its record breaking spree on the fourth consecutive day, touching another milestone of Rs 43,000-mark due to highly speculative buying amidst continued industrial support.
Standard gold (99.5 per cent purity) soared by Rs 270 per 10 grams to end at Rs 20,505 from overnight closing level of Rs 20,235.
Pure gold (99.9 per cent purity) hardened by Rs 275 per 10 grams to finish at Rs 20,610, as against Rs 20,335 previously.
Silver ready (.999 fineness) rose by Rs 230 per kg to conclude at Rs 42,955 from Tuesday's closing level of Rs 42,725.
In New York, gold for December delivery jumped USD 19.80 to USD 1,377.60 an ounce on the Comex division of the NYMEX yesterday.
Silver for December delivery gained by 11 cents to USD 27.57 an ounce.
Fidelity Mutual Fund today announced the launch of Fidelity Short Term Income Fund, an open ended income scheme that aims to generate reasonable returns primarily through investments in fixed income securities and money market instruments. The NFO for the fund will be open from 19 - 30 November 2010. Shriram Ramanathan is the fund manager of the Fidelity Short Term Income Fund. The Scheme is benchmarked to the Crisil Short Term Bond Fund Index.
Ashu Suyash, Managing Director and Country Head - India, Fidelity Investment Managers, said: "At a time when investors have turned risk averse with hardening interest rates and increasing equity market volatility, we believe that Fidelity Short Term Income Fund could provide reasonable returns even over shorter periods of time. The Fund presents a key building block for the asset allocation plans of retail and high net-worth investors and is in line with our overall objective of helping investors in reaching their financial goals. With this launch, we hope to reach out to a wide section of investors with an investment option that will leverage our expertise in bottom-up credit research to provide better post-tax returns over other interest bearing instruments including deposits."
Shriram Ramanathan, the fund manager for the Fidelity Short Term Income Fund, said: "In the current environment where short term yields have moved up significantly, on a risk-adjusted basis, short term income funds provide a good opportunity for investors to benefit from the higher yields, yet keeping interest rate risk at an acceptably low level. Fidelity Short Term Income Fund with its freshly constructed portfolio of short term instruments with attractive yields and sound credit quality (with thoroughly researched constituents) makes even more investing sense in such a scenario. The Fund has been assigned the Credit Risk Rating by ICRA."
The rating for the Fidelity Short Term Income Fund indicates that the underlying portfolio has the lowest credit risk and the highest degree of safety from credit losses.
The Fidelity Short Term Income Fund will offer Growth and Dividend options. The minimum initial investment is Rs. 5000. The Fund has an exit load of 0.50%, which will be applicable for redemptions within 6 months from the date of purchase or allotment on a first-in-first-out basis.
Investors can invest in the Fidelity Short Term Income Fund even through the SIP route with a minimum amount of Rs. 500 per installment with the total of all installments not being less than Rs. 5000/- In addition, the systematic transfer and withdrawal plans are available in the Fund.
FIL Fund Management Private Limited (FFMPL), Fidelity Investment Managers' Indian asset management company started operations in the country in 2004. Today, with total assets under management of over Rs.8900 crores (AUM as on 29 October 2010) and more than 17 lakh customer accounts, FFMPL is among the fastest growing new asset management companies in India. In addition to offices in 16 cities, it has a significant web presence, which helps investors across India access Fidelity's funds.
Further, most of its funds are listed on the NSE's Mutual Fund Service System (MFSS) and the BSE's StAR MF Platform, reaching out to investors in over 1500 cities and towns. Fidelity today offers Indian investors a comprehensive range of well-differentiated investment options through its seven equity funds and six fixed income / hybrid funds. For more information, please visit www.fidelity.co.in.
Fidelity Investment Managers is one of the world's leading global investment management companies with operations in 23 countries and more than US$ 231 billion in assets under management (as at 30 September 2010). It provides mutual funds, retirement services, including defined benefit and defined contribution pension schemes, and specialist institutional mandates to individual and institutional investors outside the Americas. Fidelity Investment Managers' US affiliate, Fidelity Management and Research LLC (FMR) is one of the US' largest mutual fund companies and manages over US$ 1.4 trillion (as at 31 August 2010) in assets.
Fidelity Investment Managers has constant access to the investment analysis carried out by FMR and Pyramis. Central to Fidelity's success is a pioneering spirit, a commitment to innovation that sets new industry standards and an unmatched investment in research, talent, technology and investor education.
(sify)
Stock open higher on drop in jobless claims
Stocks rose in early trading Wednesday after a batch of economic reports offered some hope that the U.S. economy was improving.
The government said first-time claims for unemployment fell 34,000 to 407,000 in the week ending Nov. 20. That was much better than the 435,000 new claims analysts had expected.
A separate report showed that Americans' incomes rose 0.5 percent last month, slightly better than expected. Their spending rose 0.4 percent, up slightly from September.
On the down side, orders for durable goods dropped 3.3 percent. Economists expected no change. Two more reports are due out later on new home sales and consumer sentiment.
The Dow Jones industrial average rose 90, or 0.82 percent, to 11,126, in morning trading.
The Standard&Poor's 500 index gained 9.8, or 0.83 percent, to 1,190. The Nasdaq composite index rose 30, or 1.22 percent, to 2,525.
European stock markets are mostly higher. The Euro Stoxx 50, which tracks the shares of blue-chip companies in countries that use the euro, rose 0.6 percent.
In corporate news, the world's largest maker of farm equipment reported earnings that beat estimates. Deere&Co. posted a $457.2 million profit in the quarter ending Oct. 31, compared with a loss a year earlier. Tiffany&Co. also reported a rise in profit, fueled by strong sales of jewelry in the U.S. and overseas.
Stocks fell Tuesday after a skirmish between North and South Korea drove investors into Treasurys, gold and other assets considered safe. The Federal Reserve also lowered its forecast for growth through next year.
Stock and bond markets will be closed Thursday for the holiday and stocks will reopen for short sessions on Friday.
Tuesday, November 23, 2010
MOIL IPO price band fixed at Rs 340-375
The Empowered Group of Minisiters (EGoM) has fixed MOIL (Manganese Ore India) IPO price band at Rs 340-375, reports CNBC-TV18's Aakansha Sethi.
The IPO (initial public offering) will open for subscription from November 26. The company will raise Rs 1238 crore from the primary markets.
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The government will offload 20% stake in MOIL, in which Central Government will offload 10% stake and Madhya Pradesh Government will to offload 5% and Maharashtra Government to will offload 5% stake. Retail investors, employees will get 5% discount.
Here is a verbatim transcript of Aakansha Sethi's comments on CNBC-TV18. Also watch the accompanying video.
The price band set is along expected lines although some people were expecting a little bit higher. So possibly on the lower side. But that has been a government strategy to encourage response from retail investors to price it right.
The government is divesting about 20% in this company, 10% from the central government, 5% from the Madhya Pradesh government and 5% from the Maharashtra government. The issue is expected to get the government Rs 1238 crore.
It is a smaller issue as compared to the earlier Coal India issue but nonetheless it is an important one because this is a zero debt company. It has plans of diversification into wind energy as well. It is the only company of its kind in Manganese mining in India.
On government plans to increase participation:
As per government policy throughout all the disinvestment issues this year, we have seen that the government has given a 5% discount to retail investors as well as to employee quota. That is going to continue with this issue as well. So retail investors can look forward to a 5% discount. This is the only IPO now this year, all the other divestment issues coming up will be FPOs, which will be an added incentive.
(MoneyControl)
Saturday, November 13, 2010
30th India International Trade Fair to commence on Sunday in the capital
Union Minister for Commerce and Industry Anand Sharma will inaugurate the 30th edition of India International Trade Fair (IITF) in the national capital on Sunday at the Pragati Maidan.
This year at least 23 countries including China, Japan, Korea and several western and eastern countries will showcase their products in the fortnight long trade fair.
This year the theme of this famous annual trade fair to be held between (November 14 to 27) is 'Clean and Energy Efficient Technology, Products and Services'.
Entry to the fair will be open exclusively for Business and trade visitors during the first five days. However, the fair will be thrown open for general public from November 19.
Japan and Uganda are participating for the first time.
Indian business firms, states and public sector undertakings usually draw a huge crowd every year. But China is likely to emerge one of the major attractions due to cheap products at display.
This year, Bollywood is coming in a big way, screening some hit films besides the fair would witness renowned artistes perform Gazals and Qawwali to entertain the visitors
.
This year at least 23 countries including China, Japan, Korea and several western and eastern countries will showcase their products in the fortnight long trade fair.
This year the theme of this famous annual trade fair to be held between (November 14 to 27) is 'Clean and Energy Efficient Technology, Products and Services'.
Entry to the fair will be open exclusively for Business and trade visitors during the first five days. However, the fair will be thrown open for general public from November 19.
Japan and Uganda are participating for the first time.
Indian business firms, states and public sector undertakings usually draw a huge crowd every year. But China is likely to emerge one of the major attractions due to cheap products at display.
This year, Bollywood is coming in a big way, screening some hit films besides the fair would witness renowned artistes perform Gazals and Qawwali to entertain the visitors
.
Reliance Cap Q2 net dips 28% to Rs112 cr
Anil Ambani group firm Reliance Capital on Saturday reported a 28% decline in net profit at Rs112 crore for the second quarter ended 30 September, mainly on account of loss from its general insurance business.
The total income of the company fell to Rs1,299.8 crore during the September quarter, from Rs1,466.4 crore in the year-ago period, a decline of 11%, Reliance Capital said in a filing to the Bombay Stock Exchange.
The company attributed the decrease in total income and net profit to lower capital gains and loss from general insurance business.
Of the group companies, Reliance General Insurance (RGI) reported a loss of Rs28 crore in the September quarter on account of high claims from its health portfolio.
The company has narrowed the loss from Rs39 crore in the same quarter of FY10. “RGI has re-priced its health products and also significantly reduced its exposure to the unprofitable Group Mediclaim. This has enabled the company to reduce its losses in Q2 FY11,” the company said.
At the end of the September quarter, the net worth of the company stood at Rs7,963 crore ($2 billion).
The revenues from Reliance Capital Asset Under Management grew to Rs163 crore, from Rs149 crore.
However, revenue from the consumer finance segment of the non-banking financial company fell to Rs312 crore, from Rs345 crore in the year-ago period.
Tata Steel swings to profit, Q2 net at 2,000 crore
The company earns more than 70% from its European business, Corus, which it acquired in 2007 for $13 billion, and the remaining from India and other south-east Asian countries. Tata Steel's management attributed the improvement in earnings to a mix of volume and value growth and gains from part sale of its investment portfolio. Top company officials explained that while in India it sold more steel at lower prices, in Europe, it clocked lower volumes but at higher prices during the July to September period. Tata steel reported a consolidated loss of Rs 2,720 crore in the corresponding period of last fiscal.
The company's net sales grew 11% from Rs 25,276 crore to Rs 28,091 crore. Other income saw a significant increase to Rs 814 crore compared to Rs 18 crore in the September quarter of FY10. It divested its interest in Malaysia's Southern Steel for $72 million and sold some shares in a couple of Tata Group companies.
In a parallel development, Tata Steel on Friday said that it plans to raise up to Rs 7,000 crore to knock off some debt—mainly taken to purchase Corus—on its books and to fund steel projects. The largest company within the Tata Group said it plans to spend Rs 15,000 crore this year. Though the company didn't reveal the exact financial instrument it would opt for, but added that it is looking at an equity offering, including shares, with differential voting—it may be recalled that group company Tata Motors was among the first to go for such an issue— global depository receipts, debentures and foreign currency bonds. The company's overall debt at the end of the September quarter was Rs 48,096 crore ($10.7 billion). Its debt-equity ratio is currently at 1.5: 1, and the company's intention is bring it to 1:1. During the first half of FY11, it repaid $600 million of debt. Raw material accounted for 36% of total expenditure, with iron ore being the most volatile.
Tata Steel's MD HM Nerurkar said that the Indian steel market expects to see robust demand from construction, infrastructure and auto sectors in the coming quarters. To meet the higher demand, it is expanding its steel capacity by three million tonnes in Jamshedpur.
With regard to its European operations, Tata Steel Europe's MD Karl-Ulrich Kohler said the demand outlook in Europe is uncertain and it would continue to focus on controlling costs. Tata Steel announced the financial results after the close of market hours
.
Saturday, November 6, 2010
Obama gets 50,000 jobs; deals worth $10 billion signed
It will make headlines back home in the United States, and after his 'shellacking' in the mid-term polls, Barack Obama could certainly use some good press. And, India Inc seems to be buying into President Obama's 'win-win' mantra.
Obama today announced that "several landmark" deals worth $10 billion (nearly Rs. 44,000 crore) have been reached between the two countries for creating about 50,000 jobs in the US.
"There is no reason why India cannot be our top trading partner (from 12th position now)... I'm absolutely sure that the relationship between India and the US is going to be one of the defining partnerships of the 21st century," President Obama said addressing the US India Business Council meet. "Boeing is going to sell dozens of planes to India and GE is going to sell hundreds of electric engines. The deals are worth USD 10 billion and will create more than 50,000 jobs in the US," he said.
Just before the address at US-India Business Council (USIBC) in Mumbai, Reliance Power announced a power equipment deal for 2,400 MW plants from GE and low-cost carrier Spicejet announced a deal to buy 33 new-generation 737 aircrafts from Boeing.
Making his visit against the backdrop of electoral reverses on top of economic difficulties, including a high unemployment percentage, 9.6 percent in October. He talked of the perception elsewhere of India being a haven for call centres and American retail giants being feared in India as putting small Indian shopkeepers out of business, and said these are stereotypes and ignored realities.
Obama said, "...there still exists a caricature of India as land of call centres and back offices that costs American jobs. That's a real perception. There are many Americans whose only experience with trade and globalisation has been shuttered factories or jobs being shift overseas." The US accounts for about 60 per cent of India's about $60 billion IT and IT-enabled services exports. But the reality, President Obama said, was that jobs were being created in both the countries and said India was emerging as one of the fastest markets in the world with one of the largest workforce.
"Increase in trade and commerce was a win-win proposition for both the nations," Obama said. The US President added, in 2010, trade and investment ties was not just a one-way street, it was a dynamic two-way relationship creating jobs and growth in both the countries.
India-US trade stood at US $36.5 billion in 2009-10 fiscal and the two countries aim to double trade in the next five years. Describing India, which receives about 8 per cent of its total foreign direct investment from the US, as a defining and indispensable partner of the 21st century, President Obama asked India to reduce trade barriers, while committing to reciprocate.
Obama today announced that "several landmark" deals worth $10 billion (nearly Rs. 44,000 crore) have been reached between the two countries for creating about 50,000 jobs in the US.
"There is no reason why India cannot be our top trading partner (from 12th position now)... I'm absolutely sure that the relationship between India and the US is going to be one of the defining partnerships of the 21st century," President Obama said addressing the US India Business Council meet. "Boeing is going to sell dozens of planes to India and GE is going to sell hundreds of electric engines. The deals are worth USD 10 billion and will create more than 50,000 jobs in the US," he said.
Just before the address at US-India Business Council (USIBC) in Mumbai, Reliance Power announced a power equipment deal for 2,400 MW plants from GE and low-cost carrier Spicejet announced a deal to buy 33 new-generation 737 aircrafts from Boeing.
Making his visit against the backdrop of electoral reverses on top of economic difficulties, including a high unemployment percentage, 9.6 percent in October. He talked of the perception elsewhere of India being a haven for call centres and American retail giants being feared in India as putting small Indian shopkeepers out of business, and said these are stereotypes and ignored realities.
Obama said, "...there still exists a caricature of India as land of call centres and back offices that costs American jobs. That's a real perception. There are many Americans whose only experience with trade and globalisation has been shuttered factories or jobs being shift overseas." The US accounts for about 60 per cent of India's about $60 billion IT and IT-enabled services exports. But the reality, President Obama said, was that jobs were being created in both the countries and said India was emerging as one of the fastest markets in the world with one of the largest workforce.
"Increase in trade and commerce was a win-win proposition for both the nations," Obama said. The US President added, in 2010, trade and investment ties was not just a one-way street, it was a dynamic two-way relationship creating jobs and growth in both the countries.
India-US trade stood at US $36.5 billion in 2009-10 fiscal and the two countries aim to double trade in the next five years. Describing India, which receives about 8 per cent of its total foreign direct investment from the US, as a defining and indispensable partner of the 21st century, President Obama asked India to reduce trade barriers, while committing to reciprocate.
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