Global Executives Rate India as Most Attractive Investment Destination

32 percent of 505 global investors named India as the favored market for investment according to a survey published by accounting firm Ernst & Young. China was second with 15 percent of the vote, followed by S.E. Asia, Brazil and N. America.
“There is no doubt that interest in India has increased,” Mark Otty, Ernst & Young area managing partner for Europe, Middle East, India and Africa said.  “Investors increasingly see the potential and understand the fundamentals.”  Industrial policy secretary Amitabh Kant said that the government was “determined to make India an extremely easy and simple place to do business. Our first priority is to do away with the many procedures and rules, followed by bringing in consistency and clarity in all our policies and tax regime and developing a world-class infrastructure.”
Channel NewsAsia reports that according to Financial Times data service, fDi Markets, Greenfield foreign direct investment (new ventures) in India rose 32 percent to $25 billion in 2014 after declining in the previous two years.

November 10, 2015   No Comments

Indian Economy Shows ‘Firming Growth’ Says OECD

In the September release of the Composite Leading Indicators (CLIs) that are designed to anticipate turning points in economic activity relative to trend, the Paris-based Organization for Economic Cooperation and Development (OECD) said India is expected to see “firming growth”.

As reported on their Website, the CLIs signal stable growth momentum in the Euro area particularly in Germany and Italy, while growth is firming in France. Stable growth momentum is also anticipated in Japan.

In Canada as well as in the United Kingdom and the United States, growth momentum is anticipated to moderate albeit from relatively high levels.

The outlook continues to deteriorate for China, with the CLI pointing more strongly to a loss of growth momentum. Signs of slowing growth momentum are also re-emerging in Russia. In Brazil, weak growth momentum is anticipated.

October 12, 2015   No Comments

Beauty and the BRIC

Euromonitor International, a provider of strategic market research, says that emerging market consumers are still spending a good amount of cash on beauty and personal care. Value sales across emerging markets were up almost 10% in 2014 over the previous year at fixed U.S. dollar prices. However, annual growth did not reach double-digit levels for the first time in more than a decade.  

GCI reports that global beauty and personal care brands are now faced with a more reticent China, where the consumption culture of its mid-income consumers is changing; a more cash-strapped Brazil as the Brazilian economy is veering toward recession, and a more inward-looking Russia. Will India be the new China? GCI asks, since it was one of the best performing emerging markets for beauty and personal care in 2014, with retail sales climbing 15% from 2013.

India has some of the best growth prospects over the next five years from among all the emerging markets. India’s economy is notably being boosted by lower oil prices, and increasingly beauty-conscious urban consumers will have the money to spend on beauty products. These trends bode well for beauty and personal care categories such as deodorants, color cosmetics and men’s grooming.

June 25, 2015   No Comments

Boston Scientific’s BRIC Sales Rise by 18 Percent

Speaking at the J.P. Morgan Healthcare Conference, Mike Mahoney, CEO of Boston Scientific a Marlborough, Mass.-based  medical device company, said the company derived about 10% of its total sales from emerging markets in Brazil, Russia, India and China during the 3-months ended Sept. 30, 2014 — an 18% increase from the same period in 2013.

Mass Device reports that Boston Scientific is looking double its emerging markets presence over the next 2 years as it seeks to catch up with larger competitors; therefore expanding its presence in emerging markets is one of five strategic imperatives Mahoney said the company is putting forward in 2015 and beyond.

May 1, 2015   No Comments

Christine Lagarde of IMF calls India a Bright Spot

Christine Lagarde, managing director of the International Monetary Fund,  says that  India a “bright spot” on a cloudy global horizon. She declared that India has the potential to double the size of its economy by 2019 compared to 2009.

During her visit to India, Lagarde commented, “India’s GDP will exceed that of Japan and Germany combined. Indian output will also exceed the combined output of the three next largest emerging market economies – Russia, Brazil and Indonesia…This year already, India’s growth rate is expected to exceed that of China,” reported Economic Times.

Christine Lagarde

Christine Lagarde

Five positive actions that  have caught the attention of the IMF chief are:

  1. The Modi government and India’s central bank led by governor Raghuram Rajan who are “skillfully shifting the focus to good macroeconomic management, transparent government, and inclusive development,” said Lagarde in an interview to Times of India.
  2. The 2016 Indian budget “struck a good growth-equity balance. There’s emphasis on increasing the provision of public infrastructure, and within a fiscally-responsible framework,” she said.
  3. India’s fast growing economy in which the IMF expects India’s GDP growth to pick up to 7.2% in the current fiscal and accelerate to 7.5% in 2015-16 – making India the fastest growing large economy in the world. Lagarde commented, “India is indeed a bright spot, and economic development holds much promise. India has an opportunity to become one of the world’s most dynamic economies. My message will be: Seize it!”
  4. “India has prepared better than most emerging-market economies for external shocks by shrinking current account deficit and increasing stock of international reserves; the higher GDP growth expected now, should help,” Lagarde noted.
  5. India’s subsidy reforms for reducing poverty, where the government has put in place a program to ensure welfare payments reach intended beneficiaries is commendable, Lagarde feels.

 

March 20, 2015   No Comments