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According to the UNCTAD World Investment Report 2009, developing countries are taking the lead in attracting investments as well as investing globally.
In fact, according to the report, foreign direct investment (FDI) flows to India surged to a record US$ 42 billion in 2008. This has been driven by leading trans-national corporations (TNCs) in manufacturing and services industries, ranging from steel and automotives to retail, expanding operations in India.
Significantly, the buying spree of foreign institutional investors (FII)continues as net FII inflows for the current calendar year crossed the US$ 10 billion mark on September 21, 2009, according to the Securities and Exchange Board of India (SEBI). |
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| Warm regards, |
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Aparna Dutt Sharma
CEO
India Brand Equity Foundation |
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Focus: Telecommunications |
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The Indian telecom sector is one of the favourite destinations for foreign investors, be it private equity majors or venture capitalists. In fact, during the last few years, many leading telecom operators have picked up large stakes in domestic operators. Further, companies such as Tata DoCoMo and Chinese network and handset company, ZTE, are expanding their operations in the country.
Significantly, the subscriber base is also witnessing massive growth with tele-density reaching 42.27 and the total number of telephone subscribers touching 494 million in August 2009. Also, a report by Evalueserve estimates that with the availability of 3G spectrum, about 275 million Indian subscribers will use 3G-enabled services and the number of 3G-enabled handsets will reach close to 395 million by 2013-end. | |
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Focus: Information technology |
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The Information Technology (IT)-Business Process Outsourcing (BPO) industry will witness an export growth of 4-7 per cent and domestic market growth of 15-18 per cent in 2009-10, estimates NASSCOM. Significantly, McKinsey & Company also reported that the exports component of the Indian IT industry is expected to reach US$ 175 billion in revenues and the domestic component will contribute US$ 50 billion by 2020.
In order capitalise on the opportunities presented by this growing industry, IT companies such as Dell and Logica are looking at expanding their business share from India. | |
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Interview: Lord Mervyn Davies, UK Trade, Investment & Business Minister, on bilateral relations between India and the UK |
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"Trade between India and UK is about £12.4 billion (US$ 19.85 billion). I hope that would grow significantly... We'll see Indian companies going global. The challenge in front of India now is to create global brands. Not international but global, brands from India that everybody recognises in Indonesia or in Britain. I think you are going to see that.
...I can say India has a huge banking market. You have seen the penetration of HSBC, Standard Chartered, Citi Bank and others gradually increase. I think that gradual emergence of international players in the financial services industry in India is a positive trend. There is a huge pent up demand in the insurance industry to invest in India." | [More] |
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Interview: Bruno Lee, Regional Head, Wealth Management, Personal Financial Services, Asia-Pacific, HSBC, on wealth management in India |
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"In India, where fixed income has been providing attractive returns, clients should have a strategy to allocate assets among equity and fixed income. Indian investors need to understand that the fixed income environment is quite attractive and the equity market is recovering.
At HSBC, we are excited about opportunities in India. Some estimate the retail segment will grow at around 10% CAGR, from 900,000 in 2007, to over 1.6 million until 2013. The country has a large young population. As education is important in India, there is a need to save for the long-term — for kids' education and retirement. We are well positioned to provide quality wealth management services to the mass-affluent segment to help fulfil their important goals in life." | [More] |
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| Policy/Corporate Briefs |
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| FDI tide turns in favour of BRIC countries: Report |
| According to the UNCTAD World Investment Report 2009, developing countries are taking the lead in attracting investments as well as investing globally. Further, foreign direct investment (FDI) flows to India surged to a record US$ 42 billion in 2008. |
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| FIIs continue to have voracious appetite |
| The total inflow of funds by foreign institutional investors (FIIs) as on September 21, 2009, stood at US$ 10.2 billion, according to data released by the Securities and Exchange Board of India (SEBI). |
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| Government approves 13 FDI proposals worth US$ 81.9 million |
| The government has approved 13 FDI proposals worth US$ 81.9 million based on the recommendations given by the Foreign Investment Promotion Board (FIPB), at a meeting held on September 11, 2009. |
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| Sebi amends takeover norms, offers anchor investor facility to IDR issues |
| Market regulator, SEBI, has amended the takeover regulations and offered the facility of anchor investors to Indian Depositry Receipts issues. This will raise the attractiveness of the issues, which are meant to attract foreign companies to the Indian equities market. |
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| Forex reserves climb $3.3 bn to $280.98 bn |
| India's foreign exchange reserves grew US$ 3.32 billion in the week ended September 11, 2009, to US$ 280.98 billion on the back of portfolio investments and revaluation of currencies, according to the latest data released by the Reserve Bank of India (RBI). |
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| Jamnagar SEZ exports to cross Rs 50,000 crore |
| Exports from all the special economic zones (SEZs) in India are poised to touch Rs 170,000 crore (US$ 35.3 billion) during this financial year, with the Reliance Jamnagar SEZ expected to export goods worth at least Rs 50,000 crore (US$ 10.4 billion) by March 2010. |
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| Europe looking at Indian mkts for further growth |
| Due to the huge opportunities present in India—particularly in the infrastructure and transportation sectors—European companies have shifted their focus towards India and are seeking to play a major role in the Indian market, said Claude Bitte, Vice President, Moselle Development Council. |
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| Hong Kong group raises Rs 3,900 cr for project |
| CLP India, the Indian arm of Hong Kong-based power major China Light and Power (CLP) Group, is investing over Rs 12,000 crore (US$ 2.5 billion) in two new power projects and in wind energy. |
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| Ingersoll Rand to invest $100 m in India over 3 years |
| Ingersoll Rand plc, a global diversified industrial company, has earmarked an investment of about US$ 100 million for its Indian operations during the next three years. The company also expects to source products and services of an equal amount during the period. |
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