India’s Telecom Sector Witnesses Surge in Foreign Direct Investment

Live Mint reports that the explosive growth in data consumption is taking India’s telecom sector to its next stage of growth, and foreign investments have seen a surge because of it.

India permitted 100% foreign direct investment in the telecom sector in July 2013, and the first 10 months  of  FY 2015 (ending January 2015) saw record investments.

FDI in Telecom

FDI in Telecom

June 24, 2015   No Comments

India FDI Inflows Reach a Record High

Nomura Global Markets Research disclosed that net foreign direct investment inflows to India have touched a record high of $34.9 billion in the fiscal year that ended March 2015, as can be seen in the chart below.

Fund Inflows

Fund Inflows

Net FDI inflows touched 1.7% of  GDP in the just-ended fiscal year, up from 1.1% of GDP the previous year, since there was more inbound FDI due to growing investor confidence in India and lower outbound FDI as global growth remains anemic, Nomura said in a note. Foreign investment inflows to India are predominantly to the infrastructure, telecom, oil and gas, and mining sectors, as well as the services sector reports Live Mint.

According to Nomura, FDI inflows may pick up further in FY16 because of an improving domestic growth outlook, recent liberalization of FDI limits and government efforts to improve the ease of doing business in India.

June 3, 2015   No Comments

India’s Commerce Minister Vows a Higher Growth Trajectory

 

Nirmala Sitharaman, Minister for Commerce and Industry

Nirmala Sitharaman, Minister for Commerce and Industry

Nirmala Sitharaman is an avid reader, an aficionado of Indian classical music and a graduate of Economics. She has worked with Price Waterhouse in London as a senior manager for research and analysis;  she helped East European economies adapted to Western audit and marketing systems. On returning to India she joined the National Commission for Women, where she supported the cause of women empowerment.

She joined the BJP in 2008 and was a member of the National Executive. When the party won the general elections this year, she was nominated the Minister of State for Commerce and Industry. Since then, India has liberalized foreign direct investment in defense, railway infrastructure and real estate.

She has promised that the government would create a business-friendly atmosphere to boost the manufacturing sector. “We want to chart out new path wherein business entities are extended a red carpet welcome… We are fully committed to delicensing, deregulation and radical changes. We have an open mind,” she said at the launch of the ‘Make in India’ campaign. The campaign, aimed at harnessing the untapped potential of the country in the manufacturing sector which now contributes only about 15 percent to the GDP, is not a slogan but a mission to be accomplished with a single-minded commitment, she said.

Sitharaman and her staff have identified 25 priority sectors including pharmaceuticals, automobiles, textiles, aviation, mining, and chemicals. In these sectors, substantial work has been done to identify growth drivers, investment opportunities, foreign direct investment policies, and specific reasons to invest, the trade minister said. “We are fully committed to taking India on a higher growth trajectory and we want to make India a global manufacturing destination,” she added.

 

 

 

 

November 20, 2014   No Comments

India’s HDFC Bank Approved to Raise Foreign Investment to 74%

The Foreign Investment Promotion Board, a panel of government officials that approves foreign investment in India, allowed foreigners to own as much as 74 percent of HDFC Bank Ltd., the nation’s most valuable lender by market capitalization, paving the way for a 100 billion rupee ($1.6 billion) share sale by the company.

The approval ends the uncertainty over foreign investment ceilings in India’s most valuable bank and prepares the ground for its proposed capital raising. “The government’s decision will allow the lender to proceed with the planned share sale and boost capital ratios to increase lending as the economy revives,” Vishal Narnolia, Mumbai-based banking analyst at SMC Global Securities Ltd. “Although foreign investors hold close to 74 percent stake in the bank as of now, they can invest in the proposed share sale after the rule change,” he said. HDFC Bank, led by managing director Aditya Puri, had a capital adequacy ratio of 15.7 percent as of Sept. 30 and a gross bad-loan ratio of 1 percent, exchange filings show.

November 20, 2014   No Comments

Top Asia Pac investment destinations

According to the FDi report 2013, here are the five destinations which were preferred to invest in Asia-Pacific in 2012.

As you can see, China is the favorite country for FDI, quickly followed by India with a number of projects reaching 704.  In total, the region of Asia-Pacific has attracted 3,740 projects with a 31.7% global market share.

Let’s now take a closer look at the top 5 source countries from Asia-Pacific in 2012.

As you can read, outward FDI from Asia-Pacific decreased in 2012. In total, project numbers fell by 18.52% and the highest decrease happened in India with a percentage of 30.20. Japan is still the dominant investor from the region with 873 projects although it represents a change of -11.91%.

May 10, 2013   No Comments