Another `Panchsheel' signed between India, China
Mumbai: Chinese President Hu Jintao signed a `Panchsheel' document to expand trade and economic co-operation between China and India on the concluding day of his four-day visit to India. Stepping up bilateral trade, strengthening co-operation in key areas, improving the investment climate, encouraging tie-ups for third country projects and establishing a China-India free trade area are the five steps Hu has suggested.

The Chinese leader addressed a gathering of businessmen and industrialists under the joint auspices of FICCI, CII and Assocham in Mumbai, suggested that Indian and Chinese companies should set up joint ventures in third countries to explore opportunities in the energy sector.

He said that both countries have extensive common interests in international energy, and added that the companies should be encouraged to go in for joint bidding for third country energy projects. Indo-China trade is now growing at the rate of 32 per cent and the $20 billion target, set for 2008, is expected to be exceeded this year itself. A new target of $40 billion has been set for 2010. China is now India's second largest trading partner and India is China's largest trading partner in South Asia.
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India telecom growth expected to continue: Fitch
New Delhi: India's telecom sector is expected to sustain robust growth across market segments that still had low teledensity, mainly due to a strengthening economy and rising foreign interest according to Fitch Ratings in a release.

The company added that competition is expected to intensify given the aggressive expansion plans of certain regional players, some of whom are backed by new foreign partners.

Fitch also noted the aggressive business plans of some smaller regional telecom companies, but has maintained a cautious view of their plans given the entrenched positions and significant lead advantage of the existing national players. Although further rationalisation appears inevitable, the next phase of consolidation may be delayed until cellular growth moderates.

Over the medium term, Fitch has predicted the emergence of six operators of scale - BSNL, Bharti Airtel, Reliance, Hutchison Essar, Idea Cellular and Tata Teleservices.
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India Inc tells China to reciprocate by relaxing rules
Mumbai: India Inc wants less restrictive regulations in China for doing business there.

This was the general tone at the CEO Forum of the India-China Economic, Trade and Investment Cooperation Summit here on Thursday.

Dr Anji Reddy chairman of Dr Reddy's Labs said as a first step, the Chinese government should relax excessive rules and regulations hindering smooth business ventures. The Indian pharmaceutical industry is at the forefront of knowledge-based industries with wide-ranging capabilities in the field of drug manufacturing and technology. China also has a surging pharmaceutical industry, especially in the exports of active pharmaceutical ingredients (APIs); its pharmaceutical industry is the seventh largest globally and is expected to become the world's fifth largest by 2010, he said. Ravi Kant of Tata Motors requested the Chinese Government to shatter the barriers that hinder Indian auto companies from entering the Chinese markets. He said China should adopt an open policy and allow Indian automobile manufacturers enter its markets unconditionally and should do away with restrictive regulatory norms.
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CCEA approves $1 billion FDI in realty
New Delhi: The cabinet committee on economic affairs (CCEA) has approved two real estate venture capital funds which will raise about $1 billion from foreign investors.

The funds — Urban Infrastructure Opportunities Fund (UIOF) and Peninsula Realty fund — have obtained approval from the Foreign Investment Promotion Board (FIPB) to invest in construction development projects, townships, roads, ports and power. Since the proposed FDI in these funds exceeds Rs600 crore, they were referred to the CCEA.

Peninsula Realty fund proposes to bring in $350 million which is approximately Rs1,596 crore, while UIOF proposes to bring in $450 million which translates to Rs2,300 crore. UIOF has a green-shoe option of Rs 460 crore, which will take the total inflow to Rs 2,484 crore. Both the proposals were supported by the ministry of urban development.

The CCEA also cleared the proposal by the international hotel chain Hilton International Company to enter into a joint venture with DLF. Hilton would hold 26 pc stake in the proposed JV and will invest Rs643 crore or $143 million. Hilton has also got the go ahead to set up a wholly owned subsidiary with an investment of Rs 130 crore for the operation and management of its hotel business in India.

The FIPB had already cleared the proposal after putting it on hold initially since the foreign investor did not have a no objection certificate (NOC) from its JV partner Oberoi Group of hotels with which it has a marketing agreement.
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