Deflation or Disinflation

Deflation is inflation below zero for a prolonged time. But how prolonged? Japan had inflation below zero for a decade so it is said to have deflation. In the indian context it is expected that the Q1 of 2010 would see zero inflation. Inflation is expected to rise after the quarter. This is just disinflation not deflation.

Is this good or bad? Inflation is Going to be below Zero for the first time in the history of Indian economy. In this time of slow down it should boost the demand, but as the key rates are well above the inflation figures the demand creation is abig doubt. with the essential commodity index still showing over 7% I doubt if the common man see the difference.

The good news is that with RBI set to reduce the ratees further by 50 or 100bps the demand might pick up. The domestic demand in India is enough to get the economy back on track.

Marketers around the globe are trying hard to sell, with the demand picking up marketers will be able to achieve the targets.

future of nano

Tata's to move from singur, with the singur row extending for more than a month tata's are looking at possibilities of shifting the base from singur.
The relocation of the mother plant would take 12 - 18 months even if it is done at war footing.
The options for tata's are open with many states offering then proposals for setting up the plant in their state.
Gujarat is said to be the forerunner, followed by karnataka and maharastra.
does this mean west bengal has lost its credibility?
yes until the singur row is resolved don't think any other company would dare to setup their plant in west bengal. too much is at stake.
west bengal lost tata's for sure.
The official announcement is expected to come in this week unless some miracle happens tata's are leaving west bengal for good.

Nokia's Mobile market to be down in India

At present the market share of Nokia in India is about 62% followed by Samsung . Nokia is at present losing the price war against companies like fly where in they are selling the mobile set with connection for just Rs.800. whereas Nokia’s starting model is priced at Rs.1500.
Nokia is losing out in the most attractive market in the Indian context the rural market.
Nokia has for long dominated the handsets segment and this is probably among the few industry segments where the market leader has had such a huge market share.
Even as companies work on their distribution, they are also bringing handset manufacture closer home. Nokia recently had a high profile launch of its manufacturing facility in Tamil Nadu.
LG, which also has a manufacturing facility in Pune, claims that setting up a local manufacturing unit has more benefits those economies of scale or savings on logistics - product modification, for instance. Two just-launched LG phones have a cricket game, based on customer feedback on the popularity of the sport here.
"We wouldn't have been able to meet market requirements if the product were being made elsewhere," points out H S Bhatia, product group head, GSM mobiles, LG.
So Nokia may not have any added advantage as all the mobile manufacturers have set up the plants in India.
Even though the market is growing I feel that with the entry of Apple Iphone in the market which is expected to cost around Rs.20000 in the next 3 months, will affect the sale of Nokia N and E series.
With the competition growing from the duplicate markets (China phones) Nokia will still lose its sales in the future. Nokia N 95 which costs Rs.25000 in the open market, N985 a duplicate from China costs only Rs.5000
Nokia should come up with marketing strategies to combat this rise in competitors.
Nokia’s main advantage is it brand in India and then the user friendly features which should emphasized in the low end products and the innovation in the high end products.
Nokia being a big player should be able to target the new entrants in this industry like fly and virgin mobile. Virgin mobile can take away the market share from Nokia because of their innovative strategies.