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  • MODI_XIIndian Prime Minister Narendra Modi’s visit to Xian, Beijing and Shanghai has high on visuals yet, low on impact. The two countries had a lot of hopes riding on the shoulders of two of the most nationalist leaders we’ve had in decades, yet the steps taken to achieve any substantial impact either on economic, political or border issues was subpar.

    During his three day visit, accompanied by the Chief ministers of some of India’s most prosperous states and heads of large Indian companies, Mr. Modi met Chinese president Xi Jinping in Xian his hometown, Prime Minister Li Keqiang in Beijing, Chinese and Indian students, businessmen, investors and society. He signed 21 MOU’s worth US$ 21 billion.

    Funding from Chinese banks ICBC and China Development Bank for Airtel, Adani Power Company and Jindal Steel and Power accounted for the major part of the agreement total, as did tie-ups for renewable energy companies. The two countries share bilateral trade of US$70 billion, making China India’s biggest trading partner, but the figure is worryingly skewed, with an estimated US$40 billion in favour of China.

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  • rmbbChina’s devaluation of the Ren Min Bi or peoples currency is expected to have a less than dramatic effect on the Indian economy – the most affected sectors being textiles, metals and chemicals.

    While the yuan becoming cheaper against the dollar will mean that Chinese exports rise, slightly spurring the economy, analysts expect it to have little impact on the Indian economy as the two little compete for much in the global economy. Brought on by a move from Beijing to delink the yuan from the dollar and change the currency’s reference rate, the Peoples bank of China has taken a baby step towards making the yuan an international currency.

    In the short term what experts are worried about though is that it will tilt the basket of goods further in favor of China, increasing the already yawning trade deficit between the sweet and sour neighbours. The widening gap in trade has historically always led to pressures both external and internal on the Indian government, which lends itself to often damaging international relations with China. With the Indian government already balancing under bad loans hoarded on Public Sector Banks, the Reserve Bank of India will need to take drastic measures to maintain a 7+ percent GDP growth this year.

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  • images-28The character 月 is the same for moon and month in Mandarin. This comes as no coincidence.

    Its because China, like India follows the lunar calendar. As a result, the two neighbours celebrate several auspicious days at the same time. Take for example, On the 27th of September, China celebrated the mid autumn festival while India celebrated the Ganesh festival. Similarly, Chinese New Year was celebrated on February 19th this year, while Maha shivratri was celebrated in India on February 17th. Also, an auspicious day in the holy month of Ramadan was June 20th, the 5th day of the 5th lunar month which coincided with the Dragon Boat Festival in China.

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  • Indian CEOs China maybe investing billions in companies worldwide, but its Indians who are controlling these empires. With the recent promotion of Sunder Pichai as the new CEO of Google, three Indian born executives now control companies whose combined revenue exceeds the gross domestic product of approximately 140 countries. The three CEO’s are Microsoft’s Satya Nadella and Nokia’s Rajeev Suri and Google’s Sunder Pichai. The combined revenue of the three brands is US$159.6 billion in revenue last year, according to Quartz. Add to this the intellectual capital brought in by Indian born deans of American universities – Nitin Nohria, dean of the Harvard Business School, Sunil Kumar, dean of the University of Chicago’s Booth School of Business, Dipak C. Jain, the current dean of INSEAD and we have ourselves a world in which Indians control both intellectual and financial capital worldwide. Below, Inchin Closer profiles 14 of the top Indian born CEO’s of our generation – Read more

  • black moneyIndia and China’s recent crack down on black money has sent shock waves across the world.

    With illicit money stocked in banks from Switzerland to Singapore, New Delhi is enforcing strict policies and tighter regulations to bring black money back to Indian shores. Meanwhile Since President Xi took over, Beijing has also come down heavily on evaders in a major clampdown on both government officials and businessmen.

    According to a report by Global Financial Integrity, Russia and China scale above India in the illicit funds that sit overseas. According to the report, India’s total (US$95 billion) is still less than 40 percent of China’s US$250 billion in illicit fund exports in 2012 but it’s gaining ground. Ten years earlier India’s total was only 20 percent of China’s, according to data from the Washington DC-based research and advocacy organization. Russia was on the top with US$123 billion in 2012.

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  • china stocks The Chinese stock market has nosedived loosing US$3.2 trillion or nearly twice the value of the Indian stock exchanges according to Bloomberg.

    Although Beijing attempted to arrest the free fall over the weekend, by pumping liquidity into the system, the Chinese stock markets continued to fall on Wednesday. Analysts fear India needs to look at the Chinese stock markets more closely as compared to the greek market collapse, as China’s markets are more closely linked to India than Greece is. According to the Financial Times, The Shanghai Composite opened down as much as 8 percent before paring losses to a 4.7 percent decline by 11:15am local time today. The Shenzhen index lost 3.3 percent, while the start-up ChiNext board was down 0.2 percent.

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  • China-to-India-5502Chinese companies are keen now more than ever to invest in India, with a long term vision on rich dividends in the years to come. With a stable economy, government and smart apex bank governor, India is China’s golden ticket. Besides Jack Ma who showed interest in investing in Indian technology firms earlier this year, the Wanda group, the world’s largest property developer with interest in culture and tourism, ecommerce and department stores is also keen on investing in India.

    The property major is in talks with the government of Haryana to develop 100 square kms into an industrial and township zone. While final approvals are yet to be sought for Wanda, Guangdong’s Wangtat Construction and Investment Holdings Group recently met with Vapi-based Payal Properties Pvt Ltd to develop an industrial park in Bharuch district. The park is expected to cover 300 acres and is likely to witness an investment of Rs 1,000 crore. It is expected to house industrial units from automotive, pharmaceuticals, textiles, electricity generation equipment as well as electric transmission and distribution sectors.

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  • stalled-investmentsIts time New Delhi pulled a Beijing – a massive capital infusion to kick start the Indian economy and get India rolling.

    Indian Private investments and capital expenditures have dropped significantly due to a slowing global economy and gradually waning economic enthusiasm. So much so that 2015 is recorded as the first year since 2006, that Indian public sector capital expenditure has overtaken the private sector, according to Standard Chartered. New Delhi needs to invest in her economy to get her engines chugging. Take for example Beijing’s infusion earlier this year which kept the Chinese economy in momentum.

    The Chinese central government announced both the allocation of 1.13 trillion yuan (US$185.8 billion) for upgrading internet infrastructure and the creation of a 124.3 billion yuan fund for affordable housing. These expenditures followed authorization of six new rail lines costing 250 billion yuan. Compare this with Indian Prime Minister Modi’s request to the US to digitize India earlier this month and with China to build roads and railways.

    Albeit the Indian economy is growing at 7 percent and is one of the stalwart BRICS economies, she is shaking at her knees, wobbly and uncertain of her next few steps, waiting and watching for the game to change – hopefully improve.

    Her steel sector is low, Private power producers are in the doldrums, dragged down by problems at state-owned electricity boards. The property market is also struggling, while slowing global growth has begun to hit exporters. The Rs. 700 billion (US$11 billion) which Mr. Modi kept aside for infrastructure projects earlier this year has but created a small filip for overall investments.

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  • The debate for which Asian economy – India or China is growing faster, better or stronger rages on in financial circles as investors and governments vie to fraternize with either nation.  To give this argument a logical spin, Inchin Closer presents the Asian giants in numbers. Below are a few charts that will help explain where India and China came from and the direction each nation is heading towards. On a more macro level, we will also help analyse whether polices taken today will augment well for the countries going forward. This is the first in a 2 part series. real-GDO-growth According to the IMF, as China’s economy slows and India’s picks up pace, the tiger is supposed to outrun the dragon before the end of this year, albeit marginally. According to real GDP numbers compounded, China has succeeded in growing faster and stronger than India for the past 35 years (except 3 years). However as of the end of 2014, India’s GDP is now expected to be faster than China’s.

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  • ma modiBusiness to Business billionaire Jack Ma of Alibaba fame visited New Delhi this week to promote his cash cow as the next big thing to bring the sweet and sour neighbours back on track.

    Hot on the heels of warming India China relations and 6 weeks prior to Indian Prime Minister Narendra Modi’s first official visit as India’s head of state to Beijing, Ma’s presence in Delhi has already got global chatter waves going.

    In a closed door meeting with Mr. Modi, who the Chinese view as their ticket to a large market, huge returns on investments and scalable growth, Ma marketed B2B’s as a force to help empower smaller businesses and grow the market. At a time when the Indian government is toying with the idea of Foreign Direct Investments in the retail sector at the cost of upsetting smaller shops, B2B’s can be the ideal force to grow the market.  And who better to assist the Indian market than Alibaba, the big daddy of B2B’s whose already proved highly successful in a similar market to India.

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