Lack of skilling red flag amid positives in india_ aseem arora – livemint convert 3000 euros to us dollars
Singapore: India has a lot of positives going for it, including a favourable demographic, increasing investment in infrastructure, a decisive and stable government, and falling interest rates led by declining inflation, which has enabled the country to become a preferred investment destination.
In the current year, foreign portfolio investors have invested about $8 billion, making India one of the top three investment destinations in Asia, Aseem Arora, president of Silverdale Capital, Singapore, managing Silverdale Funds, said in an interview.
India is seeing an initial public offering (IPO) boom—about $2.93 billion worth of listings have already been completed and a further $2.9 billion of IPOs is in the pipeline for 2016. Usd bloomberg Does this imply upbeat economic sentiment?
We believe the IPO boom does represent upbeat investor confidence, especially given
the larger issue sizes. Usd rmb conversion ICICI Prudential’s IPO of Rs60 billion (Rs6,000 crore) was the biggest IPO since Coal India, yet it was oversubscribed well over 10 times. Usd exchange rate in inr Many of the IPOs are sale by existing investors, such as Dr Lal Pathlabs, Equitas Holdings, and Mahanagar Gas. How to read binary The investors have matured to take it as a “positive” since it does not dilute the equity through fresh issuance, (and) at the same time, ensures basic corporate governance due to the presence of professional investors.
While domestic investors are natural investors, led by mutual funds who are sitting on over Rs15 trillion of assets, including the last Rs1 trillion which came in less than 6 months—it is interesting to note that about one-third of large IPOs has been picked up by sovereign funds such as the Abu Dhabi Investment Authority, Kuwait Investment Authority, Government Pension Fund Global of Norway, and the Singapore government. What is futures and options in stock market with examples Further, many of the firms getting listed are major companies in sectors under-represented on the stock market such as diagnostics: Dr Lal Pathlabs, small finance bank: Equitas Holdings, and insurance: ICICI Prudential. Nz to usd These companies, being significant multibillion dollar players in their respective segments, are likely to be inducted in the indices in future, thereby adding to the attractiveness of their IPOs.
India is the fastest growing major economy, outpacing China. Usd to rub It has a favourable demographic profile, increasing investment in infrastructure, a decisive and stable government, and falling interest rates led by declining inflation. Fraction operations worksheet Hence, India has increasingly becoming a preferred investment destination.
In the current year, foreign portfolio investors have invested $8 billion, making India among the top three investment destinations in Asia. Usd inr today This year, FDI in India is expected to cross $60 billion, which is about 25% higher than that last year. Usd inr rate In contrast, other countries are seeing a fall in foreign investment: Brazil received over $60 billion in 2014 but received only ~$55 billion of investments last year.
India’s share in the world market capitalization is now at 2.5%, above its long-term average of 2.4%. Dollar vs pound exchange rate In the past 12 months, world market cap has increased about 10% while India’s market cap has increased about 12.5%. Usd eur conversion Also, India has jumped 16 places to the rank of 39 out of 138 countries on the World Economic Forum’s Global Competitiveness Index. Decimal word problems grade 6 This has attracted several hundreds of billions of dollars of investments into India, from global giants such as GE, Siemens, HTC, Toshiba, and Boeing, which have announced the setting up of factories in India. Aud usd forecast 2016 Foxconn, which makes iPhones for Apple, plans to set up seven factories in India. 500 usd Along with the earlier points on IPO boom, all these demonstrate the increasing international confidence in India.
Has India moved to a phase where it can have a commodity consumption-led intensive growth? If so, how can investors capitalize on this commodity demand?
Investment into infrastructure is indeed commodity consumption-intensive, be it factories or ports. Gold manufacturing Given the infrastructure thrust by the government, it is not surprising to see an increasing intensity of commodity consumption. Inr to usd today For instance, road construction, which was about 3.7km per day under the previous government, has increased to circa 13km per day. Exchange rate idr to usd The average electrification of railways last year was up 46% over the average for the previous five years. Hkd usd exchange rate As a result, India’s coal consumption has grown over 35% in the last five years.
India, which had been a chronically power-deficit country, has technically become a power-surplus country. Convert usd to hkd Cement consumption in India has more than doubled in the past five years. Conversion of inr to usd As a result, this year, during the monsoon period, for potentially the first time, cement prices, instead of declining, have actually increased. Ice futures europe trading hours All major steel makers are ramping up capacities to cater to a potential increase in demand, be it Tata Steel or SAIL (Steel Authority of India) or JSW, all of which are increasing capacity by around 3 million tonnes per annum each. 1 usd to myr The low-risk strategy to ride this commodity consumption boom is to look at commodity producers, or still better, to focus on “users” such as automobile manufacturers and white-goods producers.
Again, between all these positives, has not India been neglecting an important aspect—should not the country’s priority be skilling, because, despite several attempts in that direction, the outcomes have not been desirable?
Yes, this indeed is a red flag. Aed to usd converter Over 240 million youth will join the workforce in the next 10 years; however, fewer than 150 million jobs are likely to be created. Usd jpy chart live On top of it, India currently faces a severe shortage of well-trained and skilled workers. Dollar indian rupee exchange rate Less than 2.5% of the workforce in India has undergone formal skill training as compared with over 50% in the US, 75% in Germany, and over 95% in South Korea.
Indian workforce readiness is one of the lowest in the world. Gender roles in america Most of the educational and training infrastructure is irrelevant to industry needs. Stock market definitions glossary It is not due to a lack of investment, but grossly inefficient execution.
There are over 20 governmental bodies in India running skill development programmes with no synergies and huge overlaps. Yahoo futures quotes India has around 700 universities, with circa 40,000 colleges, and over 10,000 stand-alone institutions. Decimal to binary calculator Yet, less than 20% of “engineering” graduates are employable; the 80% which are not employable demonstrate the quality of these institutions.
The IITs (Indian Institutes of Technology) and IIMs (Indian Institutes of Management) are touted as centres of excellence; how many of their faculty members have won Nobel prizes or written a path-breaking thesis? The credit is to the students and the mercenary selection system, not the “institution”. 1 usd to inr yesterday Talking about the industry, as per the World Bank, about one-third of employees are offered formal training in India as compared with four-fifth of employees in China. Dollar vs pound chart This is a market failure where the employers are not investing to skill employees, and employees do not have avenues, ability or willingness to pay for skilling. Usd to inr conversion calculator In Singapore, the government provides 400% deduction for amount spent on automation as well as on training of employees. Gbp usd exchange rate chart India needs to provide similar incentives to employers, and be catalysts to create partnerships with industries to run skill development programmes. Usd to canadian We do see a ray of hope in the National Skill Development Agency. How to use binary code Under the chairmanship of S. Exchange rate usd nzd Ramadorai, ex-managing director of Tata Consultancy Services, in just three years, it has been a catalyst in creating over 4,500 training centres, and has trained over 88 million people, including providing jobs to over 33 million people.
Among the positives, analysts always talk about demographics advantage. Inr to usd We boast of a young population. Gender definition This window is there for the next 20 years. Exchange rate aus to us How is the country positioned to use this demographic dividend?
Demographic dividend is not a divine doctrine, and can become a demographic disaster if the soft infrastructure in terms of skills, as we discussed earlier, and hard infrastructure in terms of enterprises are not available.
India can leverage its prowess in the services sector, to serve the world, filling the gaps due to an ageing population of the West, and capitalizing over the decline in China’s population from 1 billion to less than 900 million in the next 25 years.
India is trading at about 18 times forward PE (price-earnings). Pound dollar exchange rate live Our earnings trajectory is not that great. Exchange rate british pounds to us dollars So why are valuations so expensive?
The Sensex trades at 18.7x FY17E earnings, as against its long-period average of 16.9x. Qar to usd exchange rate At 2.6x, Sensex P/B (price-book) is near its 10-year average of 2.7x. Binary message Given that the earnings are at their trough, valuations of Indian equities remain attractive. E mini msci emerging markets futures It may seem to be expensive, but let’s not overlook the fact that the RoE (return on equity) of Indian companies at around 15% which is almost 50% higher than those of Chinese, Russian or Brazilian companies.
Also, the abundance of global liquidity and adjunct lower risk-free-rates have brought down equity premium, resulting in higher P/E ratios. Funny jokes tagalog Furthermore, whenever the economy turns around, the PE ratio appears to be significantly higher, the stock market front-runs the earnings growth.
India is making efforts to develop its bond markets, so banks can free up their capital and drive investment. Nyse futures exchange The value of Indian corporate bonds outstanding was equivalent to only 9% of gross domestic product in 2014, compared with 46% in China and 88% in South Korea.
There are several reasons for it, besides relatively low demand; the key reason is 84% increase in corporate bond issuances, with almost doubling of number of issuances. Exchange rate pound to dollar history Today, best-rated firms can raise CP (commercial paper) at 6.5% as against the 9% marginal cost of funds based lending rates by bank. Live pound to euro exchange rate As a result, the amount of issuances of commercial paper has risen by almost 50% this year. Pound exchange rate today Thus, the dependency of corporates on the banking sector itself has reduced.