Business & Economy

Indian car production
growth fastest in world 
What is India News Service, Thursday, 14 April 2005, 1500 hrs IST

India registered the fastest growth  among the top 15 passenger car producing countries in the world in 2004. 

As per latest rankings by the International Organisation of Motor Vehicle Manufacturers, OICA, India's car production grew 30 per cent in 2004 while Brazil was the second with 17 per cent growth. 

India is also just a tad away from being among the top 10 automobile producing countries in the world. It jumped two places to the 11th position in 2004.The 86-year-old Paris-based OICA is also the governing body of international auto shows. India grabbed Italy's position, whose ranking slipped to 14th from 11th in 2003. The country produced a total of 11.78 lakh cars in 2004 while Italy produced 8.33 lakh units, with its growth rate declining by 19 per cent over 2003. 

Though China's growth rate was lower at 15 per cent, it still managed to hold on to its seventh position with production of 23.16 lakh cars in 2004. In 2003, it grew by 83 per cent. 

The top three passenger car producing nations maintained their rankings. Japan, ranked first, produced 87.2 lakh cars posting a growth of 3 per cent. In 2003, its growth declined by 2 per cent. The number two on the list, Germany, produced 51.92 lakh units, growing by a mere 1 per cent. The US, ranked third, produced 42.29 lakh cars. Its growth declined by 6 per cent compared with a 10 per cent decline in growth in 2003. 

Global consultancy firm AT Kearney's automobile consultant, Mr Nagi Palle, struck a cautious note about India's performance. "India is still a very lean market with 75 per cent of the cars sold being below $10,000. If India achieves a per capita GDP of $1,000, it will trigger off mass motorisation. For China it is around $1,200," Mr Nagi Palle said. Though China's growth is slowing down, its small car market is bigger than all of India's car market, he said. 

VSNL's buyout of Tyco networks gets US approval: The $ 130 mn buyout of Tyco Global Networks by Videsh Sanchar Nigam Ltd (VSNL) which was under a scanner by the US Government due to concerns over threat to national security has received clearance from US Government . 

Cabinet gives nod to India-US open skies: In a long awaited decision on the open skies policy with the US the Cabinet Committee on Economic Affairs (CCEA) approved an agreement to be signed with the United States which will open up the skies for airlines of both the countries. 

HDFC Bank Q4 net up 30% on higher credit, fee income: HDFC Bank has reported a 30.8 per cent increase in its net profit at Rs 202.4 crore for the fourth quarter ended March 31, 2005, against Rs 154.7 crore in the corresponding quarter last year. An increase in credit and income from fees. 

VAT relief for Delhi traders: The government has decided to shift 190 items to the 4% rate in Delhi.

Committee admits VAT discrepancies: The empowered committee on value-added tax on Wednesday said lack of uniformity in VAT rates among states was a serious issue and advanced its meeting to April 15-16 to consider the matter. 

India, UK sign MoU on more flights: India and Britain on Wednesday signed a memorandum of understanding (MoU) to increase the number of flights and frequencies between the two countries. 

Seafood industry on alert as US FDA detains shipments: Seafood industry in the country is on alert as the US Food and Drug Administration (FDA) has announced that it would detain shipments from a number of countries, including India, if a banned antibiotic is detected in shrimp imports.
Punjab EOUs seek VAT exemption: Trade in Punjab is determined to oppose VAT tooth and nail. Small-scale industries (SSIs) may not be able to withstand the long-time effect of high cost of inputs like steel, pig iron and cast iron, especially in the wake of the confusion over VAT. 

Telecom Act to be amended to provide USO fund: Private Telecom operators will soon get a share of the much awaited Universal Obligation Fund (USO). 

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