India's internet growth faster than G-20 nations

In India Internet economy is driven especially by exports of IT services: net exports make up 59% of the Indian Internet economy, while consumption is only 20%.

India's Internet economy is expected to reach Rs10.8 trillion by 2016, as the country's growth rate in this segment is far ahead of many of the developing nations, says a report by Boston Consulting Group. According to a report in the Boston Consulting Group's Connected World series, the Indian Internet economy contributed Rs3.2 trillion to the overall economy in 2010, representing 4.1% of GDP, and is projected to rise to Rs10.8 trillion by 2016. Meanwhile, in the next four years, the total size of the G-20 Internet economy will be $4.2 trillion, up from $2.3 trillion in 2010.

India's Internet economy growth rate of 23% places it as the second fastest across the G-20 and ahead of many other developing nations in the G-20, which are growing at an average of 17.8%. Projected growth rates elsewhere are: 24.3% in Argentina, 18.3% (Russia) and 15.6% (Mexico).

Interestingly, Internet has become so essential in everyday life that as many as 36% of Indian online consumers said they would forgo showering for a year in order to keep Internet access, around 64% said they would forgo chocolate; 63% coffee; and 70% would give up alcohol.

The report further said had it (Internet) been a sector, it would have been the eighth largest sector in India, larger than mining and utilities. While, consumption is the principal driver of Internet GDP in most countries, the situation is somewhat different in case of India.

In India Internet economy is driven especially by exports of IT services: net exports make up 59% of the Indian Internet economy, while consumption is only 20%.

“China and India stand out for their enormous Internet related exports -- China in goods, India in services -- which propel their Internet-economy rankings toward the top of the chart,” BCG Partner Arvind Subramanian said.

While commenting on the findings, Rajan Anandan, VP, sales and operations & managing director, Google India, said, “India is seeing one of the fastest rates of Internet adoption across the globe. We see emerging opportunities for innovation in areas like mobile, e-commerce and cloud.”

The BCG report noted “High web” companies in India -- ones that use the Internet for marketing, sales and interactions with customers and suppliers -- grew their revenues 19% over the past three years, compared to only 13% for those who made low or no use of the Internet.

“Around the world SMEs which embrace the Internet are growing faster and adding more jobs than those that don't. By encouraging businesses to adopt the Internet, countries can improve their competitiveness and growth prospects,” said David Dean, BCG senior partner and co-author of the report.

The report covered 9,710 Internet users in 13 countries and used the loss aversion approach to measure the value of the Internet to consumers.

User

HDFC Bank appoints Donald D’Souza head of equity capital markets, investment banking

“It’s exciting to have got this opportunity to work with HDFC Bank which has stepped up its presence in the investment banking space over the last couple of years:” D’Souza said.

HDFC Bank has appointed Donald D’Souza as its head of equity capital markets in the investment banking division. He will be responsible for building the equity capital markets business that includes origination and execution of capital raising mandates. He will report to Rakesh Singh, head, investment banking. He is an IIM-Ahmedabad graduate and has been part of the Indian investment banking space for the around 17 years.

He joins HDFC Bank from IIFL, where he was president, investment banking. Earlier, he has held key positions in Kotak, CLSA and JM Financial. He has worked with some of India's leading corporates and private equity groups and has expertise in most equity products in investment banking including IPOs, QIPs, Rights, GDRs/ADRs, block deals, mergers and acquisitions and private equity.

Welcoming Mr D’Souza, Mr Singh said, “We are delighted to have Donald at the helm of our equity capital markets practice, which has evolved to be an extremely important business for us. He has built a strong set of relationships with some of India's leading corporates and private equity groups and enjoys respect in the eyes of his colleagues and peers. Donald’s long stint and rich experience of the industry will help us scale new heights.”

Commenting on his appointment, Mr. D’Souza said, “It’s exciting to have got this opportunity to work with HDFC Bank which has stepped up its presence in the investment banking space over the last couple of years. We shall strive to leverage its vast corporate banking relationships and add value by offering specialized, long-term solutions to build relationships on trust and commitment."

User

RBI allows foreign VCs to invest in equities via third parties

‘Foreign venture capital investors are allowed to invest in eligible securities by way of private arrangements or purchase from a third party,’ a RBI circular said.

In its bid to deepen the equity and debt markets by attracting overseas funds, the Reserve Bank allowed foreign venture capital investors to invest in securities through private arrangements or purchase from a third party.

"It has now been decided to allow foreign venture capital investors to invest in eligible securities (equity, equity-linked instruments, debt and debt instruments, debentures of a domestic venture capital undertaking or VC funds, units of schemes/funds set up by a VC fund) by way of private arrangements or purchase from a third party also," a Reserve Bank circular said.

Under the existing rules, market regulator Sebi- registered foreign VC investors are allowed to invest in these instruments through initial public offerings or through private placements. Also, they can invest in units of schemes or funds set up by a fund.

Further to this, such investors would also be allowed to invest in securities subject to the provisions of the Sebi regulations, 2000, the notification said.

The RBI further said necessary amendments to foreign exchange management (transfer or issue of security by a person resident outside India) regulations of 2000 are being notified separately.

These changes are begin brought in under Sections 10(4) and 11(1) of the Foreign Exchange Management Act of 1999, it said.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)