Category — Banking & Financial Services

Norway Increases Investments in India

According to Norwegian Ambassador to India Nils Ragnar Kamsvag, ” The simplified Goods and Services Tax is a good example of India speeding up its economic reforms process. We are very upbeat about seeing India take such measures, as these will help not only India emerge as a very strong economy in the world, but give a boost also for Norway’s trade relations with India. GST is another milestone in strengthening India’s economic position globally.”

Picture of Nils Ragnar Kamsvåg

Nils told the Economic Times that Norway’s sovereign wealth fund, the world’s biggest such fund, is willing to increase exposure in India. The value of this fund rose to a record 8 trillion Norwegian crowns ($935 billion) in the first week of May this year.

The fund, run by a unit of the central bank, invests proceeds from Norway’s oil and gas industry in foreign stocks, bonds and real estate, and is now worth more than 2.5 times the country’s annual GDP. Over the last three years, the Norwegian government took policy initiatives to increase investments by its Government Pension Fund Global in India, to approximately $9 billion.

May 14, 2017   No Comments

IMF: GST Will Push India’s GDP Growth Rate up over 8%

In an exclusive interview with the Press Trust of India, Tao Zhang, Deputy Managing Director of the International Monetary Fund said: “The government has made significant progress on important economic reforms that will support strong and sustainable growth going forward.”

 “We expect that the Goods and Services Tax (GST), which is targeted to be applied, starting in July, will help raise India’s medium-term growth to above 8 per cent, as it will enhance production and the movement of goods and services across Indian states.”
“We are extremely impressed by the work that is being done and that we expect it will pay off in terms of higher growth in the future. More could be done to raise agricultural productivity and enhance market efficiency. This would help increase the supply of high-value foods, enhance returns to farmers, and dampen food inflation pressures.”
The Economic Times reports that Zhang also stressed on the need for labor market reforms in India. “As India persists with its strong reform efforts, labor market reforms should take priority,” he noted.
Taxes

May 13, 2017   No Comments

PMI Data, Fitch Affirm India’s Economy Momentum

Fitch’s reading of India’s economic outlook, and its projection of 7.7 per cent growth in 2017-18 and 2018-19, against 7.1 per cent last year, is an affirmation of India’s positive economic growth. Even though Fitch retained India’s sovereign ratings at BBB- with a stable outlook, it expressed confidence that the business environment is likely to gradually improve with the implementation and continued broadening of the government’s structural reform agenda.

Business Line reports that Fitch lauded the measures such as the Insolvency Code, relaxation in the foreign direct investment regime and the soon-to-be rolled-out GST. It also said that efforts to rein in inflation are now bearing fruit and India is also less vulnerable to trade shocks due to its more domestically based economy and strong external finances.

Rupee Notes

The Nikkei India Manufacturing Purchasing Managers’ Index stood at 52.5 in April, the same level as in March. The rate of growth of new orders was at a six-month high in April and output increased in each of the three monitored sectors, led by consumer goods.

“Buoyant domestic demand coupled with sustained growth of new orders from abroad boosted the upturn in total new business… in April,” said Pollyanna De Lima, economist at IHS Markit and author of the report.

De Lima said the outlook appeared encouraging, with output expected to remain on an upward trajectory amid reports of planned capacity expansions, new product launches, aggressive marketing campaigns and an improving economic scenario.

 

 

May 9, 2017   No Comments

Forbes List Adds a Billionaire from India Each Month

The number of Indians on the Forbes billionaire list rose to 101 from 84 in 2016, and Fakhri Ahmadov, managing director at Ahmadoff & Company, a U.K. based wealth advisory firm, says,  “Eevery 33 days brought a new Indian billionaire to the list last year.”

Forbes says India had 36 billionaires in 2005;  55 billionaires in 2010; and by 2016 India added 46 billionaires or roughly eight new one-percents per year since 2011. Between 2005 and 2016, India’s economy rose 170% while the world economy gained around 30%.

The healthcare and pharmaceuticals sectors added 10 business founders to the FORBES billionaires list in the last seven years, more than any industry in India. Retail added another seven billionaires during that period, Ahmadov said in a report dated April 8.

Billionaire Status

The reasons for this phenomenon are:

  • Fast economic growth in consumer retail goods
  • Redistribution of wealth along billionaire family lines
  • Increased penetration of the banking system
  • Increase foreign direct investment both in the physical economy and corporate equity

 

May 2, 2017   No Comments

World Bank Expects India’s Growth at 7.2% in 2017

A World Bank report said that after a modest setback, India’s economic growth is expected to pick up speed from 6.8% in 2016 to 7.2% by 2017. Further, growth is expected to gather momentum by 2019 when the Indian economy is expected to expand by 7.7%.

World Bank Logo

The report also confirmed that South Asia remains the fastest-growing region in the world, gradually increasing its lead relative to East Asia. Regional GDP growth is expected to rise from 6.7% in 2016 to 6.8% in 2017, and 7.1% in 2018, reports the Times of India.

April 24, 2017   No Comments