India’s Growth Rate Will Improve to 7.4 percent in Fiscal 2018

The Asian Development Bank said that India’s growth rate will improve to 7.4 percent during 2017-18 and go up further to 7.6 per cent in the next fiscal year

In the Asian Development Outlook, the bank’s flagship economic publication, reasons given for this forecast are: “The impact of the demonetization of high-value banknotes is dissipating as the replacement banknotes enter circulation. Stronger consumption and fiscal reforms are also expected to improve business confidence and investment prospects in the country.” The report also noted that India’s economic reforms initiative, including the liberalization of the Foreign Direct Investment regime, and the Goods and Services Tax that is expected to roll out from July, are favorable to the country.

economic growth
Commenting on future prospects, it said that in two-thirds of economies in developing Asia, the growth is being supported by higher external demand, rebounding global commodity prices, and domestic reforms, making the region the largest single contributor to global growth at 60 percent, reports the Economic Times.

April 11, 2017   No Comments

Asia Competitive Institute Ranks India’s States for Ease of Business

In a study done by the Asia Competitive Institute which is part of the Lee Kuan Yew School of Public Policy, the Indian states of Maharashtra, Gujarat, Delhi NCR, Goa and Andhra Pradesh are rated as the top five of 21 sub-regional economies in ease of doing business in India.

Maharashtra, Delhi NCR, Tamil Nadu, Gujarat and Karnataka, were rated as the most competitive states, as well as states that lead in attracting foreign direct investment accounting for over 50 percent of the total FDI inflow into the country, said Sasidaran Gopalan, research fellow at the institute.

States of India

States of India

India’s appreciating real effective exchange rates have not significantly affected FDI inflows over the last decade, reports Bloomberg.

“The impact of real exchange rates on FDI in India has been rather negligible so far,” Gopalan pointed out, citing the finding from a recently concluded study by the institute for 2000-2013. The research study, however, also concluded that the volatility in Indian rupee “actually appears to induce more FDI into the country”.

September 17, 2016   No Comments

India Increases FDI to 100% in Defense

Foreign defense firms can now set up fully owned subsidiaries in India following the Indian government’s decision to increase Foreign Direct Investment in the defense sector to 100 percent from 49 percent, reports Defense World.

bullets

Foreign investment beyond 49 per cent has now been permitted through a government approval route wherever it is likely to result in access to modern technology or for other reasons to be recorded. This FDI limit is also applicable to Manufacturing of Small Arms and Ammunition covered under the Arms Act 1959, an official statement said.

 

 

 

September 15, 2016   No Comments

Prime Minister Modi in Washington, To Meet Obama, CEOs

India’s Prime Minister Narendra Modi arrives in Washington today, June 6,  for his seventh meeting with Barack Obama in just 24 months.  He begins his visit by laying a wreath at Arlington National Cemetery.

modiobama

On Tuesday, Modi will speak at the U.S. India Business Council‘s Leadership Summit, participate in a CEO Round Table and then go on to address both houses of Congress in a joint session.

“India became the top global Foreign Direct Investment destination in 2015 – attracting $63 billion – fueled by Prime Minister  Modi’s ability to attract foreign investors and to build a globally competitive environment in India,” according to USIBC President Mukesh Aghi.

June 6, 2016   No Comments

India’s Commerce Minister Reports 48% Increased FDI

Minister of State for Commerce Nirmala Sitharaman, said that since the launch of the ‘Make in India‘ initiative in September 2014, there has been a 48 percent increase in Foreign Direct Investment inflows for the period October 2014 to April 2015 as compared to the corresponding time frame of the previous year.

Nirmala Sitharaman, Minister for Commerce and Industry

Nirmala Sitharaman, Minister for Commerce and Industry

The ‘Make in India’ program aims at promoting India as an important investment destination and a global hub for manufacturing, design and innovation. Japan, China, France and South Korea have announced their intention to make huge investments in India in various industrial and infrastructure projects, reports Knowledge and News Networks.

August 8, 2015   No Comments