Week in Review for 05 February 2010

Week in Review for 05 February 2010

Industry body Nasscom, estimates that the country’s IT-BPO industry, will reach close to a historic $50 billion in export revenues for the financial year ending March 2010, a growth of 5.5%. For financial year 2010-2011, it expects an even stronger growth in software and services exports of 13-15 percent, and domestic revenue expansion of 15-17%. A strong domestic market and more spending on IT by the government have helped the industry.

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The makers of aircraft like Airbus, Boeing, and EADS, are banking on Asia to pull the industry out its slump. According to Airbus, passenger traffic is likely to grow an annual average of 5.9% in the next 20 years, overtaking both the US and Europe. This would make Asia the largest air transport market. A growing middle class that will likely be traveling more, Asia will need about 8,000 planes costing $1.2 trillion by 2028. In addition, its expected that demand for the helicopter market in the region will grow at least 10% in the next 10 years.

Prime Minister Manmohan Singh has warned that rising prosperity is going to put India’s food supply under greater pressure. Singh stressed that the country would have to increase its farm productivity to cope with the increasing demand. Food prices in India have shot up ever since last year’s floods and poor monsoons.

India’s annual food inflation is on the rise. The food price index rose 17.56% in the 12 months to 23rd of January, higher than an annual rise of 17.40% in the previous week.

Auto companies announced their monthly sales volumes for January on Monday, with some companies breaking records. Maruti Suzuki, the country’s largest car maker, reported it’s highest ever monthly sales while Hyundai Motor India, the country’s second largest car maker saw both total sales, and domestic sales grow over 40%. Bajaj Auto also saw its January sales more than double.

India’s manufacturing output may have risen faster than it has in the last 17 months. The Purchasing Managers’ Index reached 57.6 in January, which is higher than December’s reading of 55.6. Any figure above 50 indicates an increase in factory production.

And markets took a plunge on Friday, falling below the 16,000 mark. The Sensex fell 434 points to end the day at 15,790 and the Nifty fell 126 points to end trade at 4,718.

And finally, there’s another win for composer AR Rahman who won two Grammy awards, for best film song and best soundtrack. Both tracks are from the Oscar winning film Slumdog Millionaire. Often called the Mozart of Madras, Rahman beat rivals like Quentin Tarantino and Bruce Springsteen.