World of Industries

STRUCTURE OF INDUSTRY BY TYPE OF OUTPUT

In India four broad categories emerge when classified by type of output :

** Basic Industries
** Capital Goods Industries
** Intermediate Goods Industries &
** Consumer Goods Industries

Incidentally, all four re part of th large-scale sector.

THE BASIC INDUSTRIES

The basic industries are those which provide essential inputs to all industries and agriculture. They are iron and steel, coal, chemicals, aluminium, fertilizers and electric power.



THE CAPITAL GOODS INDUSTRIES

The capital goods industries produce the machinery and equipments required for all industries and agriculture. Machine tools, engineering tools, electrical equipments and automobiles are the examples.



THE INTERMEDIATE GOODS INDUSTRY

The interemediate goods industries consist of those that produce goods which are used in the production process of other goods, rather than for final consumption. Petroleum products, tyre industry, plastic and plastic-based products form part of the indermediate goods industry.



THE CONSUMER GOODS INDUSTRY

The consumer goods industries produce goods for final consumption such as power products, cosmetics, bicycles, electronic goods like TVs, tape-recorders, textiles, watches and so on.

Sometimes basic goods are treated as intermediate goods; intermediate goods at times are also final consumption goods and the reverse may be equally true. However, the classification given above represents the industries by the type of output and followed by the government in India.

STRUCTURE OF INDUSTRY BY SIZE OF INVESTMENT

On the basis of the size of investment the industry is classified into three types :

** the large-scale industry
** the small-scale industry &
** the tiny-scale industry


LARGE-SCALE INDUSTRY

The large-scale industry are those, whose capital investment is much above the ceiling set for small-scale industry.



SMALL-SCALE INDUSTRY

The small-scale industry or small sector is defined as comprising those firms with capital investment not exceeding Rs.35 Lakhs.


TINY-SCALE INDUSTRY

The tiny scale industry is defined as the units those capital investment not exceeding Rs.5 Lakhs.

STRUCTURE OF INDUSTRY

The Industrial structure can be classified on the basis of

(a) Type of ownership
(b) Size of investment &
(c) Type of output



STRUCTURE OF INDUSTRY BY TYPE OF OWNERSHIP

When classified according to ownership, Indian industry can be divided into three sectors, namely :

** the public sector
** the private sector &
** the foreign sector


THE PUBLIC SECTOR

There are rural inhabitants who do not derive their livelihood from agricultural activities and similarly there are also urban-dwellers whose source of income may be from agriculture or allied activities. There are workers both in agriculture and industry whose employment pattern and wage level do not follow a definite pattern. Similarly, house-hold based manufacturing activity ans small scale and tiny sector of industry are referred to as the unorganized sector or public sector
of the economy. The handicrafts, artisan professions, khadi and village industries, such as handloom sector, beedi making, agarbatti making, hand paper manufacture etc., can be located in the unorganised sector or public sector of the Indian economy.


THE PRIVATE SECTOR

The organized sector or the public sector of the economy refers to large scale Industrial units and agricultural units with a defined pattern of production and employment. In India a substantial proportion of labour force and output is located in the organized sector or public sector of the economy. Industries such as, Automobiles, chemicals, machine tools, engineering goods, textiles, electronics like TV manufacturing and Computers can be located in the organised or private sector of the Indian economy.



FOREIGN SECTOR

Foreign sector of industry is defined on the basis of shareholding pattern of assets and capital within a firm. The pattern of shareholding within a firm is known as equity. According to Foreign Exchange Regulation Act (FERA) of 1970 any company which allows foreign nationals to participate in its equity holding above 40 per cent of the total equity then that firm is treated as belonging to foreign sector. Foreign Sector is considered important in Indian industry since foreign exchange reserves in India is one of the scarce resources.

* James Hargreaves of England invented spinning Jenny in 1770, which could spin yarn faster and in large quantities.





* Richard Ark Wright introduced Roller spinning frame which could be operated by water power (water frame).






* Samuel Crompton, combined the properties of spinning jenny and water frame, and introduced a new machine called "Mule" which improved the production of yarn.





* In 1785 Cart Wright introduced a new Loom for weaving using water power.
* In 1793, Elli Witin introduced Contingen which could seprate cotton from seed.






* In 1769, James Watt invented Steam Engine, which brought a great revolution in the production of goods.
The knowledge of melting of Iron and making steel helped in making strong and powerful machines.

* In 1814 George Stevenson introduced a Cart run by steam power to transport coal from the mines to the sea ports. This was the begning of the present day railways.







* In 1830, the first train traveled from Liverpool to Manchester. The railway lines were laid through out the country. In America also railways were laid. In our country during the - royalty of Lord Dalhouie the first Railway line was laid. Dulhousie the then Governor-general encouraged the quick development of Railways. During Dalhousie's period the roadways to the extent of 2000 miles were laid. A grand trunk road was laid between Calcutta and Punjab on which a number of bridges
were constructed. Dalhousie Introduced Telegraph and cheap postage's in India.
For the convenience of journey canals were dug and bridges were built.

John Macadam started the system of building safer roads with stones.

Gradually Steamships, Motor cars, Air planes were invented.






* In the 19th century Rolland Paul introduced penny post card system to send message from place to place with lesser cost.







* Telegraph and Telephones brought unimaginable development in the field of communications. Upto 1830 England remained as the workshop of the world.







* The first railway line was laid between Bombay to Thane in 1853 Dulhousie the then Governer-general encouraged the quick development of Railways. During Dalhousie's period the roadways to the extent of 2000 miles were laid. A grand trunk road was laid between Calcutta and Punjab on which a number of bridges were constructed. Dalhousie introduced Telegraph and cheap postages in India.

INDIAN INDUSTRIES DURING BRITISH RULE


Before the British rule, India was self-sufficient in textile and Cotton products but during the British rule, India fell down to the position of importing cloth from England.

In the 19th century A.D. British government abolished the tarrif protection of Indian goods. The country was reduced to the position of supplier of raw material to British industries. In 1850 Jute mills were established in India but there was no economic development in the country. In the time of 1st World War some goods, acquired by the people were reduced in India. This gave some industrial progress in our country.

Textile and cloth industries were established. Consumer goods receieved high demand, on account of trade relation with British. During the period of war Indian industries were encouraged to produce goods. After the first world war industries in India took up the production of machines goods in preference to consumer goods. As such key industries like Iron, Steel, Textiles and Sugar Industries came under
tarrif protection.

During the second world war the industries in England, America and Japan were engaged in the production of war materials. At that time our industries increased the production of Consumer goods at a large scale and achieved great progress.

During the freedom struggle " Swadeshi " Movement in India was very much useful for the production of native goods, as the British goods were boycotted. A movement to protect the native goods and their indigenous industries, helped to keep up the country's economy.

After Independence our national government is taking keen interest in Agricultural and Industrial development through its own five year plans.

BEGINNING OF MODERN INDUSTRY


A few modern industries were started in India in the half of 19th century but were mostly owned and controlled by British Companies. Eventhough some Indians owned Industries, they could not develop them because of the discouraging attitude of the government.

The Vandemataram movement started by the extremist Congress leader Bal Gangadhar tilak included the programme of boycott of foreign goods and production of Swadeshi goods. This gave an impetus to start modern industries in India. During the two World Wars the British imports to India were not sufficient to meet the Indian demand.

Indigo was grown in Bengal and Bihar. It has great demand in England for their textile Industry as dyes were manufactured from Indigo. But by the end of the 19th century Indigo lost its market as synthetic dyes which cheeaper and durable were introduced. Tea also was exported to England in 19yh century and tea was grown in Assam, Bengal and South India. India topped in World Tea Market by the beginning of 20th century. Tea, Coffee, Cinchona and Rubber were exported to England.

The first Cotton mill was started in Bombay in 1853 and Textile Industry made a steady progress. In the first decade of 20th century India ranked fourth among textile producing countries. These cotton mills were established at Ahmedabad and Bombay. Indian Jute mills enjoyed the position of monoply till the end of 19th century.

In 1845 work in coal mines began in India. Coal was an important source of power in all industreies. Coal was largely available in Bengal, Bihar and Orissa. As modern industries required Iron and Steel also, the famous Tata Iron and Steel Company was established in Jamshedpur in 1905. Later smaller Iron insudtries were founded in Bengal and Mysore. Consequently engineering industries also were devloped.


Cement and Sugar industry began to develop by 1930. However machines were imported only from England for these industries. On the whole the British policies kept Indian capital under check while British capital played a dominating role.

SOCIAL AND ECONOMIC CONSEQUENCES OF INDUSTRIAL REVOLUTION


* England held a dominant position in the world trade. It produced goods in large scale. The native producers could not compete with them. Goods became cheaper and easily available.

* Higher duties were imposed on import of goods for the protection of local trade and industries.

* The industrially developed countries began to compete with each other for raw material and open markets which resulted in international rivalry among them.

* Japan became an industrially developed country by 19th century AD and entered in the fray.

* The economically poor countries were colonised and subjected to exploitation.

* The rivalry in colonisation led to economic imperialism. This ultimately resulted in the devastating world wars.

* There was an intense competiton and rivalry between capitalist and industrialist for the establishment of factories. The poisonous fumes from the factories polluted the climate. Air and water, resulting in health hazards.

* The workers lived in slums around factories, under hygenic conditions. The health of the workers deteriorated. They resorted to drinking, gambling and other immoral practices.

* As a result of the teachings of humanism in the 18th and 19th centuries, several legislative measures were introduced for the welfare of workers.

* Restrictions were imposed for the establishment of new factories to prevent further pollution.

* Measures were taken to make workers also as partners in the production without any discrimination between men and women. Workers and owners were placed on equal bases and the values of democracy preserved.

SPREAD OF INDUSTRIAL REVOLUTION

The industrial revolution brought a change in the countries of Western Europe and America. Things came to be produced in factories instead of houses. The heavy industries were shifted to factories.


There was a change in social life. Some of the framers-communities were transformed to indusrtrial communities. Machines played an important role in economic life. There was a revolutionary growth in the production of goods which were cheaply available in larger quantity. England exported cotton, cloth and machines, which they imported sugar, tea and food stuffs.

In agriculture, iron plough and machines for sowing and harvesting came to be used. The system of rotation of cropd brought good yeild. Large farm houses were established yeilding rich crops. Small framers and agricultural labourers who could not use machines, migrated to towns and cities. There they were absorbed as factory workers nd labourers.

The production in England grew enormously. The import of textiles goods to India increased from 50 thousand kgs to 2.5 million kgs. This development took place between 1873 and 1815.

The production of Coal was increased from 15 million tones to 54 million tones. The huge quantity of Iron ore helped for making heavy machines. These machines goods were also exported to other countries.

The Industrial Revolution spread to other countries also. After the fall of Nepolean and the end of his 23 years wars, France, Belgium, Switzerland and Germany began to use machines in their industries.

By 1850 France established qualitatively, Iron production industries. It acquired special skills in the productuion of Silks and Perfumes.

Germany started steel production in 1865, which was slow upto 1870 AD. After the unification of Germany in 1870, the progress made was tremendous. Even it could challenge England in this field.

In Rusia Industrial Revolution began late. It is only after Russian revolution in 1917, the industrial development in Russia took rapid pace and made it to occupy and important place in the industrial growth.

By 1800 AD industries started in USA. But after American emancipation from the British rule in 1870, the USA became a highly industrially developed country. In the 19th century Asiatic country Japan had become a developed country and could produce, Iron, Steel and Other machines and exported to other countries.

CAUSES FOR INDUSTRIAL REVOLUTION


As the feudalism declined, enclouser movement, fencing of the feilds and new methods in farming came to be adopted. The agriculture labour migrated to cities. Here the migrated labour was available cheaply to the industries, making industrial revolution successful. International trade was greatly flourishing. The raw material was suppelied from newly acquired colonies. They also served as markets for their finished goods. These factors helped in the growth of Industrial evolution.

England became the cetre of this revolution. All facilities were available here. In the neighbouring places of England, there were many Coal and Iron mines. The sea coast was convenient for shipping to many countries. The climat condition was humid and was most useful for textile industry. The people of England influenced by these conditions began to work for new scientific inventions. These factors hastened the process of industrial revolution in England.

There was huge surplus wealth in England, accumulated in the form of profits from sea trade since England was the only country engaged in import and export trade. There were thousands of workers available in thiscountry who were migrated from the agricultural villages in search of employement.

In the 17th century a strong and powerful government wa established in England providing peace and security. This government encouraged trade and commerce and did not interfere with private trade and followed " Laisseze Fare" (Liberal trade) policy. Shiping industry flourished as the coal and iron mines existed nearer to each other. This helped in flourishing sea-born trade.

The geogriphical discoeries gave many encouraging opportunities to interested and enterprising businessman. By 1700 A.D the east India company in India was exporting textiles, calico and other goods to European countries. They exported Cotton as raw material to England and made revolutionary progress in the production of textiles.

INDUSTRY, TRADE AND COLONIZATION


VASCO-DA-GAMA a Portuguese sailor discovered te sea route to India in 1498 A.D. Trading Companies from different European companies viz,Portugal, Denmark, HollND, France and england were formed to trade with India and other parts of Asia. These companies came to India and established rheir trade centers whichwere called " Factories " that is places where factors or officials of their companies worked. In costal region later these factories were fortified to protect hemselves from the attacks of their rivals and for fortification they require the permission of the then Emperors if India.

These companies purchased Spices, Cotton and silk Clothe, Muslin, Indigo etc., from our country. When they sold these things
in their countries they earned huge profits. These gave impetus to trade, and to have full control over it, they established
colonies in India and other Asian and African countries.

At this period, the Asian countries including India had neither strong army nor worth wile navy. So it was very easy for
thr Europeans to conquere India and to establish their political authority. Very soon India became a supplier of rew materials at cheaper rates and a market to sell finished goods to Europeans. Thus fro, the latter half of 19th century, colonisation started not only in India but also in other Asian, African and American countries by Europeans.








DECLINE OF INDEGENOUS TRADE AND INDUSTRY

Before modern methods of production were introduced in India, in villages, village artisans i.e, carpenters, potters, smiths, weavers etc., produced the goods to meet the local needs. In the towns, craftsmen made goods of high quality and luxury which had markets in India and abroad.

The chief luxury goods were Calico, and Muslin silk cloth, metal works of Gold, Silver, brass and Copper which were famous in Europen countries. The Ship building industry of India earned fame in 17th and 18th centuries. Upto the end of 18th century these industries occupied an important position in Indian economy.

Due to industrialisation of britan and establishment of their political power in India they reduced a country to the level of mere supplier of raw-material. To promote markets for their Industrial goods, britan passed Laws in 1700 and 1720 prohibiting the entry of Indian goods into their country which had a very great demand so far. The British workmen improved their workmenship to compete with Indian workmenship. More ever Industrial revolution and mechanisation of english textile industry, supplied machine-made cloth to India at compareable very cheap rate. No taxes were levied on British goods coming to India and heavy taxes were imposed on the export of Indian goods to other country. This brought the decline of Indians trade and Industries.

INDUSTRIAL REVOLUTION

The Industrial Revolution marks an important turning point in the history of mankind. Unlike other revolutions it has been nither sudden nor voilent. Industrial Revolution may be defined as a marked changed in hte system of production of goods.

In the last phase of middle ages Feudalism was declining. Under the influecse of Renaissance, trade and commerce were growing rapidly. Production of Industrial goods was increasing. The demand for these goods in newly discovered countries was increasing. The essential goods were in high demand through out the world. In the 18th century the system of production of goods underwent a revolutionary change. In this system large scale production with the help of meachines and power came into use. Prior to the Industrial Revolution; the production of goods was carried out in small scale in the house of Artisans.

The Industrial Revolution transformed this process. The goods were procuced on large scale at the factory with the help of machines driven by power. On account of geographical discoveries, new places were discovered. The world trade and commerce increased.






CAUSES FOR INDUSTRIAL REVOLUTION


As the feudalism declined, enclouser movement, fencing of the feilds and new methods in farming came to be adopted. The agriculture labour migrated to cities. Here the migrated labour was available cheaply to the industries, making industrial revolution successful. International trade was greatly flourishing. The raw material was suppelied from newly acquired colonies. They also served as markets for their finished goods. These factors helped in the growth of Industrial Revolution. England became the cetre of this revolution. All facilities were available here. In the neighbouring places of England, there were many Coal and Iron mines. The sea coast was convenient for shipping to many countries. The climat condition was humid and was most useful for textile industry.

The people of England influenced by these conditions began to work for new scientific inventions. These factors hastened the process of industrial revolution in England.

There was huge surplus wealth in England, accumulated in the form of profits from sea trade since England was the only country engaged in import and export trade. There were thousands of workers available in this country who were migrated from the agricultural villages in search of employement.

In the 17th century a strong and powerful government wa established in England providing peace and security. This government encouraged trade and commerce and did not interfere with private trade and followed " Laisseze Fare" (Liberal trade) policy. Shiping industry flourished as the coal and iron mines existed nearer to each other. This helped in flourishing sea-born trade.

The geogriphical discoeries gave many encouraging opportunities to interested and enterprising businessman. By 1700 A.D the east India company in India was exporting textiles, calico and other goods to European countries. They exported Cotton as raw material to England and made revolutionary progress in the production of textiles.

REVOLUTION

Revolution means, to bring a fundamental change, or transformation of the existing practice. Some-times revolution is introduced by force and at other times it is ushered in gradually and peacefully.The changes commonly taking place cannot be called revolutions.

Social, Political and Economic organisations do not end by themselves. They try to continue there existence as far as possible. When the existing system (organisations) become unbearable, then only revolutions takes place to replace them.

Revolution, therefore means, a transformation of ideas, thoughts and practices of the people. Revolutions are essential for the development of human society. Without revolutions or changes, the society and its structure remains static and may not take its course towards the growth and development. In certain cases where the society is ready to accept changes, the revolution would be peaceful. If the society is not ready to undergo transformation, the revolution adopts voilent methods to achieve a better position than the one which they have. For this the man kind has to undergo many sufferings. The modern ideas of democracy, socialism, nationalism are born out of revolutions.

THE GAP WIDENING BETWEEN CAPITALISTS AND LABOURS

In England, which was the first Industrial Country this gap was further widened, resulting in two
social divisions; the wealthy (capitalists) and poor(labour) classes. The capitalist class harassed the workers class, who were disperately seeking jobs for their livelihood. They used the labour for coloies profitably on lesser wages and treated them like purchased goods more or less
like slaves.

Thus the system of slavery started. The slaves were available in Asia and Africa. These slaves were made to work in factories like machines to earn more profits. They had no recogniton as human beings.

Gradually the workers classes, became united and gained their rightful place and position in the
process of production. Presently the goverment and management are anacting many loss and taking
several welfare measure for the workers.

Under the present day circumstances it is proved that captalism is necessary for Industrialisation. In socialist system, the means of production are controlled by goverment, which is responsible for production of goods. In the Nationalised Industries, the production is a natural wealth, on which the people have equal ownership;removing inequalities in society. The countries which have recently
gained independece are following this system.


The capitalist, had put he labour class into many inconveniences. They were forced to work on meagre wages. The women and the children were paid lesser wages and were employed fir dangerous works. They were made to work for longer hours from 15 to 18 hours in a day. The workers were subjected to severe hardships. The premises where they lived were unhygenic. They were exposed to several contageous and dangerous disease. There was no protection against accidents in the industries to
ward off such situations, the enlightened modren society struggled hard, imbibed with the spirit of humanism. As a result of this in 1819, hte first labour act in England prohibiting the employement of women and children, was enacted. Gradually the workers were organised into many unions and secured several rights. In 1929 the right to strive work was conceded to them.

In 1881, steps were taken for the welfare of labour class and Industrial workers; reduction of working hours, minimum wages, insurance, holidays and several other measures were taken up and affords are still on continuing such steps.

This has created a new inspiration among the workers classes and united them into one concept-the workers of the world in 1917, the Russian revolution transform ed the entire concept of the position of working classes. It conferred them the right of ownership. The wealth of the nation was given into the ownership of the people through Marxist socialism.

DEVELOPMENT OF CAPITALISM


Capitalism developed stage by stage. It grew along with industrial revolution. The nobels and Feudal lords saved their surplus wealth in the form of money and precious metals. They advanced this money to kings and traders for the exploration of new places, conducting wars and foreign trade and collected "usury" interest.

Traders and companys took loans for conducting foreign trade with colonies in Asia and Africa. Huge profits were earned through colonial trade and exploration. It will be observed that exploitation of colonies like India has played an important part in the development of capitalism in Europe. With the decline of Feudalism certain changes took place in agriculture. The land owners began to enclose the lands by proper boundaries and fencing, unlike the system of keeping open fields of 15th century. Their rights on the land were established. They adopted new methods
of civilisation for earning more profits.

The enclosure movements and new methods of farming made it impossoble for the serfs, tenants and small land holders to live in the villages so they left the villages and migrated to towns and cities in search of employement.

This took place at the time, when the capitalist were establishing their factories in towns and cities. The landless people from villages came in handy for them as cheap labour. Availability of huge amounts of capital to world-wide markets and large number of emigrant labour and the new meachines discovered on account of Indistrial Revolution, were the main capitals for the rise of modern capitalism in Europe.

As the result of Indistrial Revolution the wealth of the nation was concentrated in the hands of few people. This led to Indistrial Capitalism. The owners of heavy industries, controled thousands of labour and had a grip over them. Independent crafts professional groups came to an end and social discrimination begam to appear. The gulf between capitalists and other people became deeper.

THE MAIN FEATURES OF CAPITALISM


According to Hobson the main features of capitalism are :

1.The production is not for immediate consumption but used for earning more profits.

2.The working class of prolatariat sells their labour power to the capitalist for wages. They have no control over production or sale.

3.The capitalistics use labour along with machinery for production of goods.

4.The production is on large scale and big markets are essential part of capitalism.
The capitalism do not spend their profits for pleasure and luxuries. They use their surplus money
to earn more profits. In short capitalism means all the above features combined together.

1. CAPITALISM AND INDUSTRIAL REVOLUTION

Capitalism means it is a form of organization where industrialist or owning money purchase machinery and raw materials and hire laborers for producing goods to be sold in the market for profit.

In this system there are two social classes , namely capitalist and workers. The capitalist
own, means of production like machines and factories. They use hired labour for production of goods. The produced goods are not for their use but they are used for earnings profits.Their wealth is used for earning more wealth. Capitalist spirit is known as the one where wealth is used to earn profits. In this system production is usually on a large scale by using machines and power.

Workers do not have any means of production of their own. They earn livelihood by selling their labour. They are called the proletariat or wage labourers. Hobson says that the means of production and labour are inseparable in the process of production.

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GRAND CARS OF INDIAN ROYALTY

If any one has to be given credit for the proliferation of automobiles in India, it has to be Indian royalty Rajas, Maharajas, Nawabs, Nizams, Thakurs, Zameendars, et al. Not only did this ilk show of their wealth and also theie idiosyncrasies via the automobiles, in their own curious way they also enriched the early age of automobile. In fact so extra vagant were the ways of Indian royalty,that the automotives treasure they brought into the country are today some of the most prized in the world.

While a few single marque history books do talk about an example or two of cars from the Indian royal age, there has been no compendium solely devoted to cars of the privy purses. Until know that is. noted vintage car expert, restore and a blue-blooded royal himself, Manvendra Singh Barwani joined handa with eminent historian and author Sharada Dwivedi to put together a fascinating collection of cars of Indian nobelity. This classy tome, designed on one hand has a coffe-table ornament, is a serious historical artiofact for anyone professing a love for the automobile and its rich history in this country. One can see that it is a labour of love for both Manvendra and Sharada but they have excelled in their creation. Kuddos also to Hyundai Motors India to lend its support to this important book which will only go down as a highly importaat reference source on an era which has been lost to us along with many of cars as well.

R-COM & IDEA IN TROUBLE ADD

The Advertising Standard Council Of India (ASCI)has pulled up 15 firms, including
telecom companies, for running misleading ad campaigns during July to October this
year. During the said period, the Consumer Complaints Council (CCC) of ASCI found
15 advertisers, including Reliance Communication and Idea cellular, FMCG player
Dabur and elder pharma and coaching centre Career Launcher,violating the council's
code.

Reliance Communication had to suspenda telivision commercial as it failed to substa-
ntiate its claim "with comparative data of other mobile services" that the company is
the "fastest mobile broadband service in India". When contacted, the company said it
is currently making modification in the TV commercial. "RCOM has already responded to
ASCI and is making necessary modification in the TV commercial,"a spokes person from
Reliance Communication said.

Another Mobile operator, Idea Cellular also had to modify itz commercial, which showed
people walking while talking on mobile phones, as ACSI upheld complaint from consumers
that it encouraged "unsafe act of walking while talking on the mobile phone".

"Some action sequences as depicted in the TV commercial, shows dangerous practices and
manifest a disregard for safety without justifiable reason," ASCI said.





AIRTEL RULES OUT PRICE HIKE

Bharti Airtel belives that it is a misconception that the auction of 2G spectrum will
raise the price of telecom services in India. "The cost of winning bids at auction will
have no effect on the price customers pay for the spectrum-based telecommunication ser-
vics. Pricing depends on the opportunity cost, not historical cost, the opportunity cost
of spectrum is independent of assignement technique,"

Bharti Airtel said in a communication to Trai. Trai, currently, is reviewing the various
telecom rules and is expected to come out with the final; recommendations shortly. Bharti
Airtel is in favour that the spectrum for 2G should be allotted only through auction.

Airtel said that as the operators compete with each other for customers, no operator can
raise service prices " above the level set by the market." It pointed out that in India,
various operators have acquired the license or telecom companies in a secondary market
after paying much higher price than the license cost. "However, it has not affected the
their capability to remain competative in the Indian market at all." Bharti Airtel added.

SUZUKI TO LAUNCH LUXURY SEDAN KIZASHI AT AUTO EXPO

Maruti Suzuki India Ltd. (MSIL) Will be focussing on hybrid and electric vehicles besides
showcasing its two strategic models -Kizashi sedan and SX4 hatchback- at the Auto Expo 2010
begining next week. The car maker will also be unveiling its new multi-utility vehicle
Echo at the mega event.

With focus shifting towards alternative fuels, Maruti Suzuki wants to showcase its prowess
in future ready green technologies in the form of concept cars for hybrid and electric
vehicle. While MSIL may launch alternative feul variants of some of its popular cars at
the mega event, it will showcase the hybrid concept of SX4 sedan and electric Eeco van.

"These concept cars bring forward an intresting dimension on how eco-friendliness and
personal mobility can be attractively packaged together as an exciting product," a
senior MSIL official said.

MSIL is also excited about the proposed launch of its luxury Sedan kizashi, which, in
Japenese, means a sign of great things to come or foretaste. Through Kizashi, which is the
sixth world strategic model from the suzuki stable, MSIL wants to strengethen its position
in the fast-growing premium-car segment.

Powered by a 2.4-Litre petrol engine and equipped with 'continuously variable trmnsmission'.
Kizashi would proof to the new stimulant for D-segment choice, engaged driving, and ligfestyle
enjoyment, the official said. Suzuki engineers have tested Kizashi through cold-weather trials
in Minniesota (U.S.) and hot-weather trials in Death Valley in North America. They honed the
car's hndling on challinging country roads in the U.K. and Germany, besides testing and tuning
the sedan on the tough terrace of New Zealand.

Similarly, sedan SX4 will soon be joined by its hatchback variant in India. The SX4 hatchback
is a popular hatchback in Eurpean markets. In Europe, the SX4 hatchback is available in multiple
engine options that include 2.0 litres, 1.6 litre and 1.5 litre petrol engines. An ideal
combination of style, space, hatchback practicality, and fuel economy has made SX4 hatchback
popular in Over seas markets it comes with aluminium-alloy wheels. and on board ESp (eledtronic
stability program) for extra safety.

With features like the two wheel drive (2WD) and an optional intelligent all-wheel drive (i-AWD)
sustem, MSIL hopes that SX4 hatchback will be an instant hit among car-lovers in India.





FoRD SET TO HIKE PRICCES

CARMAKER FORD India on Wednesday (30th December 09) said it will increase prices of it entire
range of products by upto Rs 40,000 with effect from January 1 (2010). "Ford India will hike
the prices of all its models across the board effective from January 1, 2010. The upward price
revision is due to the stedt rise in input costs and exchange rate fluctations," the company
would revise the price upwards in the range of Rs 60,000 to Rs 40,000 across different models,
it added. Some of the models that Ford India sells in the country include Ikon, Fiesta and
Endevour.

INDIA's POWER INDUSTRY

Electricity, a basic minimum service that any citizen should get or for that matter the
industry for its development, witnessed severe fluctations in progress in 2009 in term
of capacity addition.

Altough, the country hopes to achieve 78,000MW in new generation capacity in the five
years ending 2012, the way things are moving now make this target look like a tall
order.

yes, the government has awarded four 4000-MW Ultra Mega Power Projects to developers,
but none of these are part of the eleventh five year plan target.

The country produces 1,55,859 MW of power as on November 30, this year, but nothing
can illustrate the slack pace of capacity adition better than the performance in the
last fiscal-the country was to add 11,061 MW in FY09 while it managed only 3,500 MW.


The return of the UPA government for a second straight term in office generated a lot
of expectations about the movement in this sector, but not many policy initatives came
by, resulting in a lacklustre performance.

The government has time and agian said that it would be able to add about 68,000-70,000
MW during the current plan period and has reiterated that with some effort, the goal of
78,000 MW can b realised. Mr.Sushil Kumar Shinde led power Minister has know set a target
of adding 13,000MW of electricity annualy for the next three years.

Even on the UMPP front the sector saw the award of only one such project to Reliance Power
at Tilaiya in Jharkhand. Since then, the government has only maid promises of inviting
bids for four other UMPPs in the states Of Oriss, tamil Nadu, Andhra Pradesh And Chhattisgarh.

In its second term, the UPA government has made this investments as the focal point. It has
decided to off load its share holding in the public sector power majors like NHPC, NTPC and REC.
The government is geared to mop up about rs.11,000 crore through the stake sale in the country's
largest power generation company.

The NTPC FPO (follow on public offer) is likely to see the light day in February 2010. Close
on the heels of NTPC, another 'navratna' PSU Rural Electrification Corp, will hit the capital
market with its follow-on public offer during the same time. REC also plans to raise fresh
10 per cent equity alongwith five per cent divestment of the Centre's holding. The disinve-
stment fever will continue to geip the sector in the next years as well with Powergrid next on
the radar.





NEYVELI TO FORAY INTO POWER, MINES INDUSTRY

Neyveli Lignite Corp. (NLC) ON Wednesday said it plans to venture into the power generation and
mining industry business.

NLC plans to participate in development of coal blocks allotted to the state government under the
public private partnership with state government undertaking, a release said.

The company has also proposed to participate in competitive bidding of power for taking up Ultra
Mega Power Project (UMPPs) floated by the power minister, it said. Stating that NLC's performance
between April-November 2009 has exceeded expectations, despite heavy rainfalls in the third quarter
of 2009-10, the company said its net sales for the first half of the year was Rs 1,765.85 crore.

PHARMACEUTICAL INDUSTRY OF INDIA

close on the heels of the visit of Japan Prime Minister, Yukio Hatoyama to New Delhi and his talk
with the Indian Prime Minister Manmohan Singh, high level officials from India and Japan are likeky
to meet in the second week of January to take forward negotiation on inking a Comprehensive Economic
Partnerhip Agreement(CEPA).

Officials in th commerce Ministry said here on Wednesday that negotiators would work on narrowing
gaps in services and Pharmaceuticals- areas of interest to India. However, Japan has several
apprehensions about opening these sectors. the Indian Pharmaceuticals industry, which gets 45 per
cent of its $20-billion revenue from exportS, is seeking market access in Japan that has a tough
control regim for drug imports. Japan is also apprehensive about giving access to Indian professional
in services, which contribute about 55 per cent to the Indian economy.

The talks for opening up of markets werw launched in 2007 and officials on both sides have completed
12 rounds of talks.

Dr.Singh and Mr.Hatoyama had instructed their officials on tuesday to sort out the issues in the
way of the CEPA. According to Indian officails figures, the two-way trade for 2008-09 stood at
$10.6 billion, with imports accounting for $7.6 billions.

Comparatively, India-China trade stands at over $40.6 bollion. Indians has signed market opening
pacts with ten member ASEAN bloc and Korea which will become operational from January 1.

Similarly, India will take up the widening trade deficit to over $20 billion with China when the
Commerce Minister, Anand Sharma, visits Beijing on January 19. Mr.Sharma and his Chinese counter
part Chen Dimng willl attend the meeting of the Joint Ecinomic Group (JEG) where the issue of the
large tradfe gap would be discussed. the Commerce Minister had already expressed its concern over
the increasisg trade gap between India and China. India's imports from China are over three times
its exports to that country, according to the 2008-09 data.

In the JEG meeting, which is being convened after three years, India would also seek access for its
fruits and vegetables in the Chinese market, the Officials said.

China, on its part is likely to seek market economy status from Indian and may reiterate its concerns
on India resorting to large number of anti-dumping cases against the neighbouring country.