Monthly Archives: April 2010

India Considering Rule Change on Foreign Ownership of Banks

Apr. 30 – India is considering changing some investment rules on foreign ownership of banks according to industry secretary R.P. Singh.

Singh told Dow Jones Newswires on Friday that the government may treat fresh investments by banks that are majority owned by foreign investors as local. Under the current rules, any investment made by foreign banks into their local units is treated as a foreign investment, making the lenders vulnerable to the restrictions on overseas investments. Continue reading →

India’s Mergers and Acquisitions Activity Up by 33 Percent

Apr. 29 – India’s mergers and acquisitions activity during the first quarter of the year increased by 33 percent with total transaction value estimated at US$14 billion, one of the best performing quarters in terms of value, according to a report by an independent mergers and acquisitions intelligence service.

Inbound and local mergers and acquisitions in the country increased from 40 to 53 during the first quarter of the year compared to the same period in 2009, although the value of the deals went down from the previous quarter’s US$5.1 billion to US$4.7 billion. Continue reading →

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Project Offices Now Permitted to Open Foreign Currency Accounts

Apr. 28 – The Reserve Bank of India has revised Foreign Exchange Management Regulations to permit authorized dealer banks to allow project offices established by foreign investors in India to maintain non-interest bearing foreign currency accounts.

The change will make it easier to implement projects in the country when in terms of procurement matters and purchasing goods overseas for the project they are involved with. Continue reading →

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India Considers Cutting Export Costs

Apr. 28 – The Indian government is looking for ways to cut costs for exporters to make them more competitive in world markets.

This may involve simplifying procedures and transparency issues as well as doing away with cost inefficiencies. The Minister of State for Commerce and Industry Jyotiraditya Scindia is heading a task force to study the matter and will submit a report by June. Continue reading →

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New Delhi to Launch Airport Express

NEW DELHI, Apr. 27 – As the city prepares for the Commonwealth Games in October, the impact of the huge international athletics event on its infrastructure is already taking effect as it readies the launch of its new airport express.

Next month, the government will test the first set of trains purchased from Spanish-based rail equipment manufacturer CAF and is scheduling the launch of the Airport Express Line connecting Connaught Place with Delhi International Airport in September. Continue reading →

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World Bank Raises India’s Shareholder Status

Apr. 27 – The World Bank Group increased India’s shareholder status from 2.77 percent to 2.91 percent on Sunday, making it the seventh largest shareholder in the International Bank for Reconstruction and Development (IBRD).

The shift in voting power reflects the South Asian nation’s growing clout and the bank’s decision to redistribute shareholdings in favor of developing economies; allotting them 47.19 percent of total votes while advanced economies get 52.81 percent of voting power. Continue reading →

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India to Issue New Discussion Papers on FDI Policy

Apr. 26 – India is set to release six discussion papers related to foreign direct investment policy next month with a possibility that it may include a paper on reforming India’s retail sector.

“We will bring out discussion papers and invite suggestion from the public,” Secretary Department of Industrial Policy and Promotion (DIPP) R.P. Singh told The Press Trust of India. On the question of which areas the papers will cover, Singh said, “All the issues which are troubling you will be covered.” He indicated that one of the papers would be on the multi-brand retail sector. Continue reading →

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IMF: India Becoming Better Integrated With Asia

Apr. 26 – India is incorporating more with the rest of Asia and will play a major role in Asia’s growth, said top officials from the the International Monetary Fund.

IMF Director, Asia Pacific Department, Anoop Singh said that the fund forecasts that Asia will maintain its lead in overall global recovery and grow an estimated 7 percent for 2010 and 2011. “As is now well-known, China and India will again lead Asia’s growth with growth rates of 10 and 8.8 percent this year,” he said. Continue reading →

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