India: Economic Outlook India Rides on a Growth Curve
The year 2012 was important in India’s perspective as the plan for the next five years was laid in this year. Based on those plans, the country will continue its further journey towards attaining the economic growth. Therefore, 2013 is expected to witness implementation of plans, schemes and decisions that have been taken a year before.
The new year has brought in new hopes, especially in the Indian businesses. The Government of India has released its Five Year Plan 2012-17, which is expected to boost the Indian businesses in many sectors. At the same time, foreign companies continue to look at India as an investment destination. This approach has led towards many partnerships and joint ventures. One of such notable joint ventures (JV) in 2012 was between Russian oil giant Sibur and Reliance Industries (RIL).
The company is called Reliance Sibur Elastomers It was formed with the intention toproduce 1,00,000 tonnes of butyl rubber per year in Jamnagar. The upcoming facility will be the first manufacturer of butyl rubber in India and the fourth largest supplier of butyl rubber in the world. This rubber plant is expected to be commissioned by mid 2014.
Energy – From Oil to Renewables
Apart from oil giants coming together, the talks at the ministry level with regards to oil have also been initiated between India and Saudi Arabia. Petroleum ministries of the respective countries held a discussion with the focus on matters of bilateral cooperation in the oil & gas sector. Considering the country’s growing oil requirements, the Indian ministry has proposed investment opportunities in petroleum upstream and
downstream sectors to the Saudi Ministry.
Another sector that is booming in India is new and renewable energy. According to the Ministry of New and Renewable Energy (MNRE), a total power generation capacity of around 26,267 MW from renewable has been setup in the country as on October 2012. Furthermore, a target of adding about 30,000 MW from various renewable energy sources has been fixed for the 12th Plan period. Hence, we can expect to see more investment being made in this sector in 2013.
The power sector too is expected to achieve the capacity addition target of 17,956 MW in the year 2012-13, with the government making serious efforts to achieve a much higher capacity addition of about 88,000 MW in the 12th plan.