Delhi: With the government setting the tone for
a capital subsidy of 25 per cent on investments for
setting up semi-conductor and nano-technology manufacturing
units, the forthcoming Union Budget for 2007-08 held
the promise to help cross-border mergers and acquisitions
in these sunrise sectors.
a new report IndusView Advisors Private Limited said
the entry of global technology leaders in to India was
symbolic of the need to bridge the digital divide between
developed and developing economies, the benefits of
which would eventually percolate down to the citizens.
report notes that the current initiatives would open
the Indian electronic design automation (EDA) industry
to more merger and acquisitions in a bid to attain the
$43 billion dollars size by 2015, from the current levels
of $3 billion.
to Bundeep Singh Rangar, chairman, IndusView Advisors,
the benefit extended to the semiconductor industry was
expected to attract investments of up to $10 billion
in the next four to five years from global chip manufacturers
like Intel Corp, Advanced Micro Devices Inc, Texas Instruments,
who had earlier shied away from India.
says the heightened M&A deals would provide companies
with a competitive advantage of cost and engineering
skill sets in the country.
report also notes that the retail sector in India, which
has seen the interest of global retail giants like Wal-Mart,
Tesco, Metro AG would witness revamping as traditional
shops would make way for new formats such as departmental
stores, hypermarkets, supermarkets and specialty stores.
easing regulations would attract more investments in
the retail sector taking the benefits of organised retail
to customers, the report said.
to Rangar, it was only a matter of time before Tesco
and Boots set up shop in India.
The report also focused on the infrastructure sector,
which offers $150-billion investment opportunity in
the next few years. Infrastructure assumes importance
as the development of the corresponding real-estate
sector depends on IT, it added.
real estate market is expected to be worth $50 billion
by 2010, from the $14 billion this year. This growth
in the real estate sector would come from housing requirement
of 80 million units over the next 15 years and 200 million
square feet in office space required over the next five
years by the country''s IT and BPO industries, the report