Softbank to sell eAccess stakes to Samsung, others

TOKYO: Japanese telecommunications firm Softbank has decided to sell a two-thirds stake in eAccess, a smaller mobile service provider, to Samsung Electronics and 10 other companies, according to reports.

Softbank, which last year signed a $20 billion takeover of US firm Sprint Nextel, is in talks with 11 possible buyers, including Ericsson and Nokia Siemens Networks as well as Japanese firms, the Nikkei newspaper said on Saturday.

Cutting its eAccess stake to below one-third will enable Softbank to skirt the government policy on spectrum allocation to telecom service providers, the Nikkei said.

Softbank turned eAccess into a wholly-owned subsidiary on January 1, and will remain its top shareholder with a 33-percent stake, major media said.

But the communications ministry has viewed the purchase as running counter to the policy of allocating frequency bands fairly to cellphone carriers, Kyodo News said.

Softbank is working towards selling a roughly six percent interest to each of the 11 companies by the end of this month, the Nikkei said.

The company hopes that the sales could also facilitate better development and upgrades of its telecommunications network by strengthening ties with major foreign firms, the Nikkei said.

Softbank also wants to tap the foreign partners' know-how to improve its services, the Nikkei said.

To prevent any impact on its American operations, Softbank has opted not to let any Chinese companies buy the eAccess shares, the Nikkei said.

The US Congress has expressed concerns about the use of Chinese communications equipment in the country.

- AFP/al

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Cameras not entirely out of the picture at CES 2013

The update to the Fujifilm X100, the X100S, was one of the few bright spots in camera announcements.

(Credit:
Sarah Tew/CNET)

LAS VEGAS--It's been an exceptionally busy and newsworthy past 12 months for cameras -- budget full-frame models, 4K action cameras and cinema cameras, full-frame compacts. Unfortunately for CES 2013, most of that happened at Photokina this past Fall. So while this show brought a few nice, potentially ownworthy updates to existing product lines, none of it really stands out as particularly whizzy.

In advanced cameras, the most common update has been to autofocus systems, with combo phase-detection/contrast AF starting to take over in camera lines that have traditionally had rather slow performance -- new models like the Fujifilm X100S and the Samsung NX300. The X100S has the most technologically innovative advancement, debuting a split-screen electronic viewfinder for improved manual focus control. We had a chance to try it and even though we were never fond of that type of viewfinder on film SLRs, it works well in an EVF (because the viewfinder is brighter than on, say, a cheap SLR).

Perhaps the most notable, though notably good or bad we've yet to decide, is Polaroid's entry into the interchangeable-lens camera market with cheap Micro Four Thirds and Nikon CX-size sensors and mounts. The camera's are extremely plasticky and the sensors are built into the lens, but the company will have adapters for other mounts with built-in sensors. We're really curious about the photo quality.

The Olympus Stylus Tough TG-2 iHS, announced at CES 2013, should be a very good camera because it's basically the same as its predecessor.

(Credit:
Joshua Goldman/CNET)

As far as point-and-shoots go,
CES 2013 was a fairly weak show with just one or two interesting cameras launched from each manufacturer. And by interesting we mean that they were mostly refreshes of previously existing cameras with some feature tweaks. Again, that's more an indication of CES' importance as a show for cameras than it is for the state of the category. However, the cameras announced do show where the market is going.

For example, Olympus announced the Stylus Tough TG-2 iHS, an update to itstop-of-the-line rugged compact. It picks up exactly where its predecessor left off, but it can now go 10 feet deeper underwater (up to 50 feet), and it now has aperture priority and enhanced macro modes.

Similarly, Samsung rolled out its second-generation of Smart Cameras loaded with Wi-Fi for fast sharing and backup. But while some of the wireless features are new, such as an option to send every photo directly to a smartphone or
tablet as they're taken, the cameras themselves weren't remarkably different than last year's models. Likewise, Nikon announced the Coolpix S6500, which is basically just a Wi-Fi-enabled version of the Coolpix S6400.

Sony announced nothing but its entry Cyber-shots at CES 2013.

(Credit:
Lori Grunin/CNET)

Sony stuck to entry-level models, though at least it included its entry model with a Sony Exmor R BSI CMOS sensor, the Cyber-shot DSC-WX80, so there's at least some idea of the new features coming to other models this year.

Even Fujifilm backed off on new FinePix models, keeping its typical double-digit list of CES cameras to seven. This included two of the shows point-and-shoot highlights, the hobbyist-targeted HS50EXR and the ultrasupermegazoom SL1000.

Another highlight -- and the only entirely new model announced -- was Canon's PowerShot N. The tiny square camera has a flip-up 2.8-inch touch screen and an 8x wide-angle zoom lens, and does away with a shutter release button and zoom lever, using rings around the lens instead.

The PowerShot N introduces a new Creative Shot mode, too, which will automatically create five different versions of a single shot using different color modes, crops, and styles in addition to saving the original photo. It's an unique option and the camera we tried did the edits fast, so maybe Canon has something here. At least with the mode, I'm not sure about the camera.

So for point-and-shoots this year, it looks like it's just going to be long zooms and rugged cameras from here on out, with a few exceptions like the PowerShot N.

As for camcorders, Sony made the most interesting updates to its lineup, though that's not saying much. And while most manufacturers have cut back on the number of models announced for 2013, Sony still blanketed us with 10 versions.

The POV action camcorder market grew by at least three more as well with two good-looking new models from iON, the Air Pro 2 and Adventure, and the HX-100D from Panasonic, which kind of misses the point of the small action cam market.

Perhaps more interesting was the growing number of accessories for turning an iPhone into more of a point-and-shoot camera, such as the Kickstarter project Snappgrip (available for Galaxy S3, too), Will.i.am's pricey foto.sosho cases, and Olloclip's upcoming case/lens combo.

In the end, CES 2013 wasn't so much a bust for the category, just that it's still not the place camera manufacturers are making huge announcements. But, with CP+ in Japan just weeks away, maybe we'll get some real treats then.

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U.S. tells computer users to disable Java software

Updated 9:00 p.m. ET

WASHINGTON The U.S. Department of Homeland Security is advising people to temporarily disable the Java software on their computers to avoid potential hacking attacks.

The recommendation came in an advisory issued late Thursday, following up on concerns raised by computer security experts.

Experts believe hackers have found a flaw in Java's coding that creates an opening for criminal activity and other high-tech mischief.

CNET's Topher Kessler writes:

"The malware has currently been seen attacking Windows, Linux and Unix systems, and while so far has not focused on OS X, may be able to do so given OS X is largely similar to Unix and Java is cross-platform.

Even though the exploit has not been seen in OS X, Apple has taken steps to block it by issuing an update to its built-in XProtect system to block the current version of the Java 7 runtime and require users install an as of yet unreleased version of the Java runtime.

Luckily with the latest versions of Java, users who need to keep it active can change a couple of settings to help secure their systems. Go to the Java Control Panel that is installed along with the runtime, and in the Security section uncheck the option to "Enable Java content in the browser," which will disable the browser plug-in. This will prevent the inadvertent execution of exploits that may be stumbled upon when browsing the Web, and is a recommended setting for most people to do. If you need to see a Java applet on the Web, then you can always temporarily re-enable the plug-in.

The second setting is to increase the security level of the Java runtime, which can also be done in the same Security section of the Java Control Panel. The default security level is Medium, but you can increase this to High or Very High. At the High level, Java will prompt you for approval before running any unsigned Java code, and at the Very High level all Java code will require such approval, regardless of whether or not it is signed."

Java is a widely used technical language that allows computer programmers to write a wide variety of Internet applications and other software programs that can run on just about any computer's operating system.

Oracle Corp. bought Java as part of a $7.3 billion acquisition of the software's creator, Sun Microsystems, in 2010.

Oracle, which is based in Redwood Shores, Calif., had no immediate comment late Friday.

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CDC: Flu Outbreak Could Be Waning

The flu season appears to be waning in some parts of the country, but that doesn't mean it won't make a comeback in the next few weeks, according to the Centers for Disease Control and Prevention.

Five fewer states reported high flu activity levels in the first week of January than the 29 that reported high activity levels in the last week of December, according to the CDC's weekly flu report. This week, 24 states reported high illness levels, 16 reported moderate levels, five reported low levels and one reported minimal levels, suggesting that the flu season peaked in the last week of December.

"It may be decreasing in some areas, but that's hard to predict," CDC Director Dr. Thomas Frieden said in a Friday morning teleconference. "Trends only in the next week or two will show whether we have in fact crossed the peak."

The flu season usually peaks in February or March, not December, said Dr. Jon Abramson, who specializes in pediatric infectious diseases at Wake Forest Baptist Health in North Carolina. He said the season started early with a dominant H3N2 strain, which was last seen a decade ago, in 2002-03. That year, the flu season also ended early.

Click here to see how this flu season stacks up against other years.

Cheryl Evans/The Arizona Republic/AP Photo

Increasing Flu Cases: Best Measures to Ensure Your Family's Health Watch Video

Because of the holiday season, Frieden said the data may have been skewed.

For instance, Connecticut appeared to be having a lighter flu season than other northeastern states at the end of December, but the state said it could have been a result of college winter break. College student health centers account for a large percentage of flu reports in Connecticut, but they've been closed since the fall semester ended, said William Gerrish, a spokesman for the state's department of public health.

The flu season arrived about a month early this year in parts of the South and the East, but it may only just be starting to take hold of states in the West, Frieden said. California is still showing "minimal" flu on the CDC's map, but that doesn't mean it will stay that way.

Click here to read about how flu has little to do with cold weather.

"It's not surprising. Influenza ebbs and flows during the flu season," Frieden said. "The only thing predictable about the flu is that it is unpredictable."

Dr. William Schaffner, chair of preventive medicine at Vanderbilt University Medical Center in Nashville, Tenn., said he was expecting California's seeming good luck with the flu to be over this week.

"Flu is fickle, we say," Schaffner said. "Influenza can be spotty. It can be more severe in one community than another for reasons incompletely understood."

Early CDC estimates indicate that this year's flu vaccine is 62 percent effective, meaning people who have been vaccinated are 62 percent less likely to need to see a doctor for flu treatment, Frieden said.

Although the shot has been generally believed to be more effective for children than adults, there's not enough data this year to draw conclusions yet.

"The flu vaccine is far from perfect, but it's still by far the best tool we have to prevent flu," Frieden said, adding that most of the 130 million vaccine doses have already been administered. "We're hearing of shortages of the vaccine, so if you haven't been vaccinated and want to be, it's better late than never."

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String of bombings kill 101, injure 200 in Pakistan

QUETTA, Pakistan (Reuters) - At least 101 people were killed in bombings in two Pakistani cities on Thursday in one of the country's bloodiest days in recent years, officials said, with most casualties caused by sectarian attacks in Quetta.

The bombings underscored the myriad threats Pakistani security forces face from homegrown Sunni extremist groups, the Taliban insurgency in the northwest and the less well-known Baloch insurgency in the southwest.

On Thursday evening, two coordinated explosions killed at least 69 people and injured more than 100 in Quetta, the provincial capital of Balochistan, said Deputy Inspector of Police Hamid Shakil.

The first attack, in a crowded snooker hall, was a suicide bombing, local residents said. About ten minutes later, a car bomb exploded, they said. Five policemen and a cameraman were among the dead from that blast.

The attacks happened in a predominately Shia neighborhood and banned sectarian group Lashkar-e-Jhangvi claimed responsibility. The extremist Sunni group targets Shias, who make up about 20 percent of Pakistani's population.

Targeted killings and bombings of Shia communities are common in Pakistan, and rights groups say hundreds of Shia were killed last year. Militant groups in Balochistan frequently bomb or shoot Shia passengers on buses travelling to neighboring Iran.

The killers are rarely caught and some Shia activists say militants work alongside elements of Pakistan's security forces, who see them as a potential bulwark against neighboring India.

Many Pakistanis fear their nation could become the site of a regional power struggle between Saudi Arabia, source of funding for Sunni extremist groups, and Iran, which is largely Shia.

But sectarian tensions are not the only source of violence.

The United Baloch Army claimed responsibility for a blast in Quetta's market earlier in the day. It killed 11 people and injured more than 40, mostly vegetable sellers and secondhand clothes dealers, police officer Zubair Mehmood said. A child was also killed.

The group is one of several fighting for independence for Balochistan, an arid, impoverished region with substantial gas, copper and gold reserves, which constitutes just under half of Pakistan's territory and is home to about 8 million of the country's population of 180 million.

SWAT BOMBING

In another incident Thursday, 21 were killed and more than 60 injured in a bombing when people gathered to hear a religious leader speak in Mingora, the largest city in the northwestern province of Swat, police and officials at the Saidu Sharif hospital said.

"The death toll may rise as some of the injured are in critical condition and we are receiving more and more injured people," said Dr. Niaz Mohammad.

It has been more than two years since a militant attack has claimed that many lives in Swat.

The mountainous region, formerly a tourist destination, has been administered by the Pakistani army since their 2009 offensive drove out Taliban militants who had taken control.

But Talibans retain the ability to attack in Swat and shot schoolgirl campaigner Malala Yousufzai in Mingora last October.

A Taliban spokesman said they were not responsible for Thursday's bombing.

(Additional reporting by Jibran Ahmad in Peshawar, Pakistan; Writing by Katharine Houreld; Editing by Mark Heinrich and Jason Webb)

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Warnings handed to China celebrities over censorship row

BEIJING: Chinese authorities handed warnings to several celebrities who voiced support for a newspaper at the centre of a censorship battle online, newspaper reports and social media posts said on Friday.

Taiwanese singer Annie Yi, who works in mainland China, said on her social media account that she had been invited to "drink tea" with authorities, a common euphemism for being cautioned by authorities, the South China Morning Post reported.

The warning came after Yi -- who has more than six million followers on Sina Weibo, a Chinese website similar to Twitter -- expressed support for Southern Weekly, a newspaper at the centre of protests over government censorship this week.

Other Chinese celebrities, including the former head of Google China, Kai-Fu Lee, and property tycoon Ren Zhiqiang also said they received invitations to "drink tea", after posting messages in support of the paper, according to online posts.

The two men have a combined 38 million followers on the site, which had more than 400 million registered users in 2012.

Chinese activists have previously said that invitations to "drink tea" are extended by state security police, who use such meetings as warnings not to engage in anti-government activities.

Several Chinese celebrities posted messages in support of the Southern Weekly this week, after journalists at the paper protested government censors' replacement of a pro-reform editorial.

Yao Chen, an actress who has 32 million followers on her Weibo account, earlier posted the paper's logo and quoted Russian dissident Alexandr Solzhenitsyn: "One word of truth shall outweigh the whole world".

Southern Weekly was published as scheduled on Thursday, after reports that newspaper staff had struck a deal with authorities that the paper would not be censored before publication.

- AFP/al

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IBM crowned patent king for 20th year in a row

IBM has always been known for raking in more U.S. patents than any other company, but this year signals a landmark: not only is it IBM's 20th consecutive year of earning more patents than any other company, it also made a single-year record with 6,478 issued patents, according to the annual tally published today by IFI Claims Patent Services.

"We are proud of this new benchmark in technological and scientific creativity, which grows out of IBM's century-long commitment to research and development," IBM chairman and CEO Ginni Rometty said in a statement. "Most concretely, our 2012 patent record and the two decades of leadership it extends are a testament to thousands of brilliant IBM inventors."

Coming in second and third place were Samsung with 5,081 issued patents, and Canon with 3,174 issued patents. Both Google and Apple made the top 50 list, in the 21st and 22nd places, respectively. And while they weren't at the head of the list, they both did far better than in year's past.

According to the New York Times, Google, with 1,151 patents issued, had a 170 percent jump over last year. And, Apple, which was awarded 1,136 patents this year and 1,236 last year, has had a 68 percent jump since 2011.

"Google and Apple are clearly taking intellectual property very seriously, and playing to win," chief executive of IFI Mike Baycroft told the New York Times.

Of IBM's granted patents, around 200 were security related, showing that the company is looking toward technology's growing emphasis on security and privacy. Other IBM patents issued were in areas of health, analytics, cloud, mobile, banking, social networking, and more.

From 1993 to 2012, IBM has received almost 67,000 U.S. patents. This year, 8,000 of the company's inventors worked on developing the record 6,478 granted patents.

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Sheriff: Calif. teen planned attack on classmates

Updated at 9:40 p.m. ET

TAFT, Calif. A 16-year-old student armed with a shotgun walked into a rural California high school on Thursday, shot one student and fired at others and missed before a teacher and another staff member talked him into surrendering, officials said.

The teen victim was in critical but stable condition, and the suspect, whose pockets were stuffed with ammunition, was still being interrogated, Kern County Sheriff Donny Youngblood said at a news conference Thursday evening.

The suspect used a shotgun that belonged to his brother and went to bed Wednesday night with a plan to shoot two fellow students, Youngblood said.

Surveillance video shows the alleged shooter trying to conceal the gun as he nervously entered Taft Union High School through a side entrance after school had started Thursday morning.

When the shots were fired, teacher Ryan Heber tried to get the more than two dozen students out a back door and engaged the shooter in conversation to distract him, Youngblood said. Campus supervisor Kim Lee Fields responded to a call of shots fired and also began talking to the teen.

"They talked him into putting that shotgun down. He in fact told the teacher, `I don't want to shoot you,' and named the person that he wanted to shoot," Youngblood said.

"The heroics of these two people goes without saying. ... They could have just as easily ... tried to get out of the classroom and left students, and they didn't," the sheriff said. "They knew not to let him leave the classroom with that shotgun."

The shooter didn't show up for first period, then interrupted the class of 28 students.

Youngblood said the suspect alleges the two students he targeted had bullied him for more than a year, but the sheriff couldn't confirm the allegations.

"Certainly he believed that the two people he targeted had bullied him, in his mind. Whether that occurred or not we don't know yet," Youngblood said.

Youngblood did not release the student's disciplinary record, saying he didn't have it.

The shotgun is believed to belong to the boy's brother and was in the boy's home, Youngblood said.

The Sheriff's Department did not release the boy's name because he was a juvenile and had yet to be charged. But many students and community members said they knew the boy and said he was often teased, including Alex Patterson, 18, who went to Taft with the suspect before graduating last year.

"He comes off as the kind of kid who would do something like this," Patterson said. "He talked about it a lot, but nobody thought he would."

Trish Montes, who lived next door to the suspect, said he was "a short guy" and "small" who was teased about his stature by many, including the victim.

"Maybe people will learn not to bully people," Montes said. "I hate to be crappy about it, but that kid was bullying him."

Montes said her son had worked at the school and tutored the boy last year, sometimes walking with him between classes because he felt sorry for him.

"All I ever heard about him was good things from my son," Montes said. "He wasn't Mr. Popularity, but he was a smart kid. It's a shame. My kid said he was like a genius. It's a shame because he could have made something of himself."

The wounded student was flown to a hospital in Bakersfield and was listed in stable but critical condition Thursday evening. Officials said a female student was hospitalized with possible hearing damage because the shotgun was fired close to her ear, and another girl suffered minor injuries during the scramble to flee when she fell over a table.

Officials said there's usually an armed officer on campus, but the person wasn't there because he was snowed in. Taft police officers arrived within 60 seconds of first reports.

Bakersfield television station KERO reported receiving phone calls from people inside the school who hid in closets. About 900 students are enrolled at the high school, which includes ninth through 12th grades.

Wilhelmina Reum, whose daughter Alexis Singleton is a fourth-grader at a nearby elementary school, got word of the attack while she was about 35 miles away in Bakersfield and immediately sped back to Taft.

"I just kept thinking this can't be happening in my little town," she told The Associated Press.

"I was afraid I was going to get hurt," Alexis said. "I just wanted my mom to get here so I could go home."

Taft is a community of fewer than 10,000 people amid oil and natural gas production fields about 120 miles northwest of Los Angeles.

The attack there came less than a month after a gunman massacred 20 children and six women at Sandy Hook Elementary School in Newtown, Conn., then killed himself.

That shooting prompted President Barack Obama to promise new efforts to curb gun violence. Vice President Joe Biden, who was placed in charge of the initiative, said he would deliver new policy proposals to the president by next week.

Sen. Dianne Feinstein, D-Calif., said in a statement that her father had attended Taft Union and she has visited the school over the years.

"At this moment my thoughts and prayers are with the victims, and I wish them a speedy recovery," Feinstein said. "But how many more shootings must there be in America before we come to the realization that guns and grievances do not belong together?"

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Judge: Holmes Can Face Trial for Aurora Shooting

Jan 10, 2013 8:45pm

(Arapahoe County Sheriff/AP Photo)

In a ruling that comes as little surprise, the judge overseeing the Aurora, Colo., theater massacre has ordered that there is enough evidence against James Holmes to proceed to a trial.

In an order posted late Thursday, Judge William Sylvester wrote that “the People have carried their burden of proof and have established that there is probable cause to believe that Defendant committed the crimes charged.”

The ruling came after a three-day preliminary hearing this week that revealed new details about how Holmes allegedly planned for and carried out the movie theater shooting, including how investigators say he amassed an arsenal of guns and ammunition, how he booby-trapped his apartment to explode, and his bizarre behavior after his arrest.

PHOTOS: Colorado ‘Dark Knight Rises’ Theater Shooting

Holmes is charged with 166 counts, including murder, attempted murder and other charges related to the July 20 shooting that left 12 people dead and 58 wounded by gunfire. An additional 12 people suffered non-gunshot injuries.

One of the next legal steps is an arraignment, at which Holmes will enter a plea. The arraignment was originally expected to take place Friday morning.

Judge Sylvester indicated through a court spokesman that he would allow television and still cameras into the courtroom, providing the outside world the first images of Holmes since a July 23 hearing. Plans for cameras in court, however, were put on hold Thursday afternoon.

“The defense has notified the district attorney that it is not prepared to proceed to arraignment in this case by Friday,” wrote public defenders Daniel King, Tamara Brady and Kristen Nelson Thursday afternoon in a document objecting to cameras in court.

A hearing in the case will still take place Friday morning. In his order, Judge Sylvester said it should technically be considered an arraignment, but noted the defense has requested a continuance.  Legal experts expect the judge will grant the continuance, delaying the arraignment and keeping cameras out of court for now.

Sylvester also ordered that Holmes be held without bail.

Holmes’ attorneys have said in court that the former University of Colorado neuroscience student is mentally ill. The district attorney overseeing the case has not yet announced whether Holmes, now 25, can face the death penalty.

SHOWS: World News

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Analysis: Modi's Gujarat growth model might not work across India

SURAT, India (Reuters) - Turning a single Indian state with a long tradition of entrepreneurship and a solid political majority into an investor-friendly economic powerhouse is one thing.

Replicating that experience across a diverse country of 1.2 billion would be a tougher prospect for Narendra Modi, whose leadership of booming Gujarat state has led to his being touted as a potential candidate to become India's next prime minister.

While Modi wins praise even from critics for cutting red tape and making government more responsive and predictable, many ingredients for Gujarat's run of growth were in place well before he took office in 2001.

"It is like an icing on cake sort of thing. You have a nice cake and Modi has done a lot of good icing," said Rakesh Chaudhary, director of Pratibha Group, a textile manufacturer in Palsana on the outskirts of the Gujarat city of Surat.

Industry in Gujarat is helped by a long coastline and plenty of barren land that is easy to turn over to factory use.

The power that comes from a long-standing and heavy majority for his Bharatiya Janata Party (BJP) in the state also gives Modi an advantage that he would not enjoy on a national stage marked by fractious coalition politics.

Despite a controversial past - Modi is accused by critics of not doing enough to stop or of even quietly encouraging religious riots in 2002 that saw as many as 2,000 killed, most of them Muslims - he has established a reputation as an economic reformer in part by building on the strengths of Gujarat and marketing them heavily.

Modi's marketing savvy, aided by the Washington lobbying and public affairs firm APCO Worldwide, will be on display at the biennial "Vibrant Gujarat Summit" that begins on Friday.

Initiated by Modi in 2003 to attract investment after the violence and an earthquake in 2001, the event is attended by thousands of corporate officials who pledge billions in investment, although in reality only a fraction has seen the light of day. Of 12.4 trillion rupees ($225 billion) in investment proposed at the 2009 event, just 8.5 percent had been spent as of November 2011, according to state government data.

"Under Modi's regime, there has been significant improvement in infrastructure growth, significant improvement in industrialization, as well as agriculture," said Jahangir Aziz, senior Asia economist at JPMorgan. "But what has been overplayed is initial conditions were actually pretty decent in Gujarat."

HIGHER OFFICE?

The stocky Modi, who favors traditional Indian attire and a clipped white beard, plays down any prime ministerial ambitions.

But his popularity in Gujarat - the BJP won 115 of the state assembly's 182 seats in a December election - has fuelled speculation that he could lead his Hindu nationalist party in 2014 against India's ruling Congress party, which has been beset by corruption scandals and overseen a sharp economic slowdown.

"His economic record in Gujarat is obviously something which matters a lot to the middle classes. That, coupled with strong leadership," said Swapan Dasgupta, an analyst with links to the BJP who expects Modi to be the party standard-bearer in 2014.

Critics say that while Modi has indeed encouraged investment and helped bring reliable electricity and law and order, double-digit growth has not been shared broadly enough. In the five years through March 2010, some states - including Tamil Nadu and Karnataka - did better at bringing down poverty levels.

"Big business people get a lot from the government and scheduled caste people (minorities) get a lot, but people like us who are in between get nothing," said Bhupendra Thakkar, 50, who earns 6,000 rupees ($109) a month selling fruit near Surat's decrepit railway station.

FRIEND OF BUSINESS

Modi lured Tata Motors to the state in 2008 after the company's plans to build a factory for its low-cost Nano car were thwarted by farmers in West Bengal.

Ford Motor Co and Maruti Suzuki are also building plants in the western state - high profile investments that carry the added benefit of acting as marketing tools.

In the seven years through March 2011, Gujarat's economy grew an annual 10.08 percent at constant prices, against 6.45 percent in the eight years through March 2002 (Modi took office in October 2001), which was still ahead of the all-India average of 6.16 percent. A handful of states, including Maharashtra and Tamil Nadu, clocked bigger gains over the same recent period.

By comparison, policy gridlock at the national level has contributed to a drop-off in corporate investment, putting India on track to record its slowest annual growth rate in a decade.

Accustomed to getting his way, Modi, 62, could struggle to negotiate the coalition politics that have become the norm at the national level and have hindered attempts at reform by Prime Minister Manmohan Singh's Congress-led administration.

"Policymaking has benefited from the fact that the BJP has had absolute majority in the state legislature - an advantage it certainly will not enjoy in the federal parliament," said Anjalika Bardalai, an analyst with the Eurasia Group in London.

Modi has also been able to leverage the business acumen of Gujaratis, a group that has long been known for trading and entrepreneurship and includes a prosperous global diaspora as well as billionaires such as Adani Group chief Gautam Adani and Mukesh Ambani, who controls Reliance Industries, India's most valuable company.

"Modi might not be as successful as he has been here because the business mentality is unique to Gujarat," said Chandrakant Sanghavi, chairman of Sanghavi Exports International, a diamond trader and processor. "It could be prevalent in other states but the ratio may be less." ($1 = 55.0700 Indian rupees)

(Editing by John Chalmers and Alex Richardson)

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