2.2. Current Indian Automotive Industry A. Automotive Industry is growing at a rapid pace fairing among top ten in the world. Two wheeler in 2nd position; passenger cars in third position and commercial vehicles in 5th position. B. India has become a major hub for automobiles: i.
Raghavendra and Velmurugan focused their questionnaire survey on currency hedging practice of 100 IT companies in India. The results show that larger companies are more vulnerable to the influence of the 3-4 currencies (US dollar, euro, pound and yen), because their income is mainly controlled by overseas businesses of different currencies in different parts of the world. The results show that the foreign exchange risk is the most important financial risk for IT enterprises, and the forward contract is the best contract to reduce the risk of the India IT enterprises. The study shows that the 6-12 - month contract is the average time span of the use of monetary hedge tools by India IT companies. The survey also found that the overall attitude of the India IT companies in the implementation of the currency hedging is fairly risk averse (2014, p.592).
One of the best things happen for the Indian automobile market in the recent years was its improvement in the export sector. In the year 2003-04 for the first time in Indian history vehicle worth more than 1 billion USD were exported with the growth rate of 56%. In the year 2009 India emerged fourth largest exporter of passenger cars, in 2010 with the production of more than 3.7 million automotive vehicles with an increase of 33.9% India became third largest exporter of passenger cars. It contributes 4% of the national GDP and accounts for 5% of the Indian industrial output. With employing 13 million people directly or indirectly it has become one of the major employment generators in the country, with the present growth trend it is expected that employment will double by
Global auto majors like Ford, GM (GM) and Volkswagen (VLKAY) are investing heavily in the country. However, these carmakers aren't up to the mark in the Indian market so they are focusing more on exports. For instance, Ford’s domestic sales have been flat at best this year. In fact, Ford saw a decline of 8% in domestic sales in the month of February in India. The Blue Oval sold 5,483 units last month in India compared to 5,959 units last year.
For this purpose, study utilizes the annual frequency of time series data from 1989 to 2008. In this study multiple-regression model is used to estimate the effects of independent factors on the economic growth in India.Empirical findings indicate that Growth rate of gross capital formation, Growth rate of exports of goods and services and Labor force is correlated positively with economic growth in India in the long run. Inflation rate, Official Exchange rate, Domestic credit to private sector has negative impact on economic growth and these determinants slow down the growth rate of Indian economy in short run and long run. Cautious, But Optimistic PUB. DATE May 2008 The author reflects upon the pace of economic growth in India.
The environment factors help the industry to go through vast changes. Emergence of new competition have huge impact on vehicle development and design. Advancement of technology has helped the industry to use more high-tech driving capabilities. Other Environment factors include Political, Legal, Economic, Socio culture factors etc. After Saudi Arabia, UAE is the second largest automobile Industry in the GCC.
Things to be Mindful of while Buying Foreign Exchange in India: Foreign exchange or currency conversion is a fairly simple process but you need to consider a few points before opting for it. Here is a list of things to be mindful of while buying foreign exchange in India. • Compare Exchange Rates: Conversion rates offered by different vendors vary as per their margin. It is always better to compare the rates of at least 5 vendors before choosing one. You should also check online to know the exact conversion rates to find out which dealer is charging the right price from you.
Exchange rate volatility and its impact: Case of India and China Exchange Rate Exchange rate between two currencies is the rate at which one currency will be exchanged for another. How to calculate exchange rate Each country manages the value of its currency through varying mechanisms. The currency can either be free-floating or fixed. 1. Movable or Adjusted Peg System A system of fixed exchange rates, but with a provision for the revaluation (usually devaluation) of a currency.
However, FIIs are highly volatile in nature and a sudden exodus of hot money from India can effect a nosedive in the bellwether indices. Make in India will give an unprecedented boost to FDI flows, bringing India back to the global investment radar. 6. The urge to attract investors will actuate substantial policies towards improving the Ease of Doing Business in India. Ground breaking economic, political and social reforms, are to be taken to keep its house in order to market Brand India to the world at large.
Increment in Income. Another big advantage of foreign direct investment is the increase of the target country’s income. With more jobs and higher wages, the national income normally increases. As a result, economic growth is spurred. Take note that larger corporations would usually offer higher salary levels than what you would normally find in the target country, which can lead to increment in income.