Year in review: How 2012 fared for India Inc.

Year in review: How 2012 fared for India Inc.
The year 2012 saw both ups and downs for India Inc. While the first half saw sentiment plummet after economic growth dropped to a three-year low, the second half saw renewed optimism as the government finally kick-started its stalled reform agenda by allowing foreign direct investment in retail along with a hike in fuel prices to curtail its burgeoning subsidy bill.
Here is a snapshot of the year gone by for various sectors
  1. Retail: It was an eventful year for the retail sector. The government permitted FDI in multi-brand retail sector, which attracted wide-spread opposition from various political parties, including key ally – Trinamool Congress, eventually turning into a political issue in Parliament. The sector also saw controversies with regard to lobbying and corruption charges in global giants like Wal-Mart and Adidas. (Read More)
  2. Aviation: Indian aviation industry witnessed tumultuous developments in 2012 with the grounding of Kingfisher Airlines and financial trouble hitting Air India and other carriers, even as a prestigious airport project contract bagged by a GMR Infrastructure was terminated by the Maldivian government. However, to provide some succour to the ailing Indian carriers, the government came up with some pro-industry policies like allowing foreign airlines to invest in their Indian counterparts, but to no avail. (Read More)
  3. Banking: Approval to the long-pending Banking Laws Amendment Bill injected new life into a sector that has been struggling to cope with rising bad debts and pressure on the bottom line in the wake of a global slowdown that also affected the performance of the Indian corporate sector. Most of the banks continued their fight in 2012 to contain their non-performing assets (NPAs). It also saw a record number of corporate debt restructuring (CDR) cases. (Read More)

  4. Auto: Beginning with a bang amid all the glitz and glamour of the auto expo, the year will be ending with a whimper for the automobile industry as sales dwindle and the worst-ever industrial violence at Maruti Suzuki's Manesar plant leaves a big scar. New model launches such has the Mini from BMW, the Ertiga from Maruti Suzuki, the Duster from Renault, the Quanto from Mahindra & Mahindra and the Sail U-VA from General Motors kept consumers interested in a tough market. Yet, recalls by Ford, Toyota and Honda added to the woes of the industry. (Read More)
  5. Stock market: Investor wealth soared by 27 per cent to around Rs. 67.7 lakh crore in 2012 as stock indices gained nearly 25 per cent on hefty capital inflows. The slew of reform measures announced by the government added to the cheer in markets, although concerns remain over economic growth and rising fiscal deficit. (Read More)
  6. Power: Fluctuating between hope of fuel supplies and despair of prolonged grid failures, it was mostly a gloomy year for the power sector in 2012. Persisting fuel scarcity, inter-ministerial turf wars and bleeding distribution companies afflicted the sector, which witnessed one of the worst electricity grid failures in July. (Read More)
  7. Pharma: It was the government that hogged the limelight this year as far as the sector is concerned by clearing the new National Pharmaceutical Pricing Policy-2012, unlike in the past when corporate mergers and acquisitions stole the show. (Read More)
  8. Bullion: Continuing with last decade's northward journey, gold prices breached the psychological Rs. 30,000 level during 2012 to hit an intra-trade historical high of Rs. 32,530 in November, amid sustained investment enquiries throughout the year. (Read More)

With inputs from PTI


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