India economic growth to surpass China’s in 2015-16: UN report

Recently released UN World Economic Situation and Prospects (WESP) Report for Mid update -2015 has projected that India’s economic growth will surpass China’s growth in 2016.

The report has projected India’s economy to grow by 7.6 per cent in year 2015 and 7.7 per cent in 2016. While, it has projected China’s economic growth will be 7 per cent in year 2015 and 6.8 per cent in 2016.

Key facts from report

  • It has termed South Asia’s economic outlook as largely favourable as most economies in this region are expected to experience a strengthening of growth in 2015-16.
  • The main reasons for strengthening of growth in this region will be because of stronger domestic consumption and investment, and increase in exports.
  • The report has forecasted South Asian region’s GDP will grow by 6.7 per cent in 2015 and 6.9 per cent in 2016.
  • It also projected that the global GDP will accelerate slightly from 2.6 per cent in 2014 to 2.8 per cent in 2015.
  • While, the global consumer price inflation will be at an average of 2.5 per cent, the lowest level since 2009.


GMR Infra, GIIC ink MoU for Kakinada SEZ 

GMR Infrastructure Ltd. has signed Memorandum of understanding (MoU) with Guizhou International Investment Corporation (GIIC) for developing Kakinada special economic zone (SEZ) in Andhra Pradesh.

On behalf of GMR Infrastructure Ltd. the MoU was signed by its subsidiary Kakinada SEZ (KSEZ) Pvt. Ltd- President Challa Prasanna in the presence of Prime Minister Narendra Modi and GMR founder Grandhi Mallikarjuna Rao in Beijing, China.

The MoU seeks to set up industrial park for Chinese high-end equipment manufacturing companies in Kakinada SEZ (KSEZ). In this regard, a consortium of three Chinese manufacturing firms- GIIC plans to set up 2,000 acres industrial park.

It should be noted that KSEZ is a port-based multi-product special economic zone, spread over about 10,500 acres.

The fully developed facility by KSEZ and GIIC will in turn generate over 5,000 jobs for both skilled and unskilled workers.

For developing the infrastructure and various facilities of the industrial park GIIC will invest $500 million. In addition, Chinese companies setting up units at the park will invest $ 2-3 billion on their operations over five years.


Reliance Jio signs pact with Chinese telecom giant Huawei for 4G devices

Reliance Jio Infocomm (RJio), a telecom arm of Reliance Industries (RIL) has signed a pact with Chinese telecom equipment manufacturer firm Huawei for sourcing various 4th Generation (4G) devices.

As per agreement, Huawei will supply RJio with 4G devices which include smartphones, tablets and mifi dongles. Apart from Huawei two other Chinese telecom firms are eager to supply 4G devices to RJio.

This agreement will play important role in RJio ambitious plans to launch 4G service by 2015 in around 5,000 towns and cities in India. It seeks to cover over 90 per cent of urban India and over 2.15 lakh villages.

It should be noted that it is mandatory for RJio and other Indian telecom companies to roll out the 4G services who had won broadband wireless access (BWA) spectrum in 2010 by August 31, 2015 as per the licensing agreement.

These services must be rolled out in at least 90 per cent of the service areas, failing which the Department of Telecom (DoT) have the right to withdraw the radiowaves. In this regard, DoT also had announced the procedure to test network roll out of companies that have procured BWA spectrum.