stellar's blog

The market is looking towards an upward slope. We have the likes of Global real estate giant IREO pumping in $500 million in various infrastructure projects in India over a period of seven years. The organization is among one of the largest investors in the country’s real estate sector. They have already invested $1.5 billion and are still having another $500 million available in cash for further investments in our projects. The company currently has 13 projects and is in the process of constructing an IT SEZ (special economic zone) in Pune.

After nearly four years of India Real Estate boom, the prices dropped 20-40 percent since their peak, property sales to an all time 50 percent low leaving developers under immense pressure. It was time for market correction.

Looking at the current scenario we see that Indian cities have the potential to have over 300 new hypermarkets by 2011, mostly in tier-I and tier-II cities and even in 2008, 212 towns had sufficient market potential for hypermarkets for break-even existence. Also today things are gradually picking up momentum especially in the country’s home retail segment  which was among the categories worst affected by the slowdown with a decline of 15-25% in sales for e.g.

But how far are these predictions true with the new policies and the signal that retail trade sector may not be opened any further by the government in order to protect the interests of small traders as the retail industry is the second largest employer after agriculture. Also with Parliamentary Standing Committee report opposing the entry of heavyweights into the retail trade, Indian Retailers looking for foreign tie-ups are in a cautious mood.

 Good opportunities for SMEs in Paraguay (an interview with the Ambassador of Paraguay, Genaro Vicente Pappalardo) 

Insight, customer focus can help SMEs in midst of global slowdown (an interview with David Wittenberg)

 In my view, the infrastructure sector in India is looking upward with major investment and expansions plans. India’s cement industry, which is a 224 million – tonne industry is set to grow at 10 per cent in June, thanks to spending on infrastructure and housing projects together with industrial expansion. Since November last year, the domestic cement sector has managed to keep its growth over 8 per cent on the back of good demand for the building material. It struck a growth of as high as 13 per cent in the beginning of the current financial year in April.

India Inc will be delighted with the election results at a time when the global recession shows little signs of abating and the need for a strong, stable government at the Centre becomes imperative.
One segment which has kept its fingers crossed about the future is the oil sector and, in particular, the public sector companies. Thanks to a pricing policy that is still in favour of subsidies and just refuses to acknowledge the need for a free market, these jewels of India’s crown, aptly christened navaratnas, have had a rough deal over the years.

This sector which is considered as the growth engine of the economy is one such priority sector which has been hit hard. In the recent past, things have become glaringly more complicated for SMEs who are finding it increasingly difficult to retain business orders and obtain credit.

The global economic downturn has adversely affected the nation's SME sector. The tightening access to credit and weaker growth is cutting the revenue of this sector. And SMEs need to take the situation as a learning experience, that during the economic crisis there is deregulation of the economy, where most controls on setting up of new industrial units are removed, and a policy of encouraging enterprises is initiated. And so SMEs need to take this as an advantage.