Monthly Archives: May 2012

Infrastructure: India Frontrunner in Public-Private-Partnerships

May 31 – It is generally believed that India’s infrastructure is bad, especially when compared to the impressive infrastructure of China. International observers like to explain the current reality as a result of the differences in political systems: India being a democratic country and China being officially communist. India’s bureaucratic hurdles, the numerous decision-makers, and powerful lobbies tend to make the country’s decision process somewhat tedious. In China, meanwhile, the political elite are deciding on the infrastructure projects and, in absentia of a civil society, implementation is quicker than in most other countries. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade | Tagged Gujarat, India PPP, Public-Private Parnerships | 1 Comment

Morgan Stanley Obtains Indian Banking License

India also relaxes foreign investment by QFIs

May 30 – The Reserve Bank of India has granted the U.S. financial institution Morgan Stanley a banking license. The bank, one of the largest players in global M&A and advisory services, is expected to use its license to lend to corporate clients when advising on takeovers involving Indian entities. It is highly unlikely to diversify into mainstream banking operations. However, the bank is expected to ramp up its Indian wealth management services. Continue reading →

Posted in Business, Finance, Tax and Accounting, Legal and Regulatory, Regulatory Update | Tagged India Banking Licenses, India Finance, India Lending, India M&A, Morgan Stanley | Leave a comment

India-EU Trade Grows 22%

Over US$100 billion for first time

May 30 – Bilateral trade between India and the European Union went beyond US$100 billion for the first time last year, showing a growth of some 22 percent over the previous year. India’s Commerce Ministry released the data last week, showing US$110 billion worth of trade, up from US$90 billion the previous year. Of this, India imported US$57 billion and exported US$53 billion worth of goods. Continue reading →

Posted in Business, FDI and Foreign Trade | Tagged European Union, India Economy, India Trade, Indian Exports, Indian Foreign Trade, Indian Imports | Leave a comment

India-Myanmar Sign Key Trade and Development Deals

Infrastructure includes road linking India to Thailand

Indian Prime Minister Manmohan Singh with Myanmar President Thein Sein

May 29 – Indian Prime Minister Manmohan Singh, in Myanmar meeting with President Thein Sein this week, has agreed on a number of key investment and development projects with the country. It has been the first visit to Myanmar by an Indian PM in 25 years.

Among the various agreements signed has been an air services project, which will provide 18 Indian cities with flights to Myanmar and also allow them to combine these with onward flights to other Asian destinations. Indian companies will also explore oil in some of Myanmar’s blocs, while border trade zones will be set up at Arunachal Pradesh at the Pangsau Pass. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade | Tagged Arunachal Pradesh, Manmohan Singh, Moreh, Myanmar, Myanmar Infrastructure, Thein Sein | Leave a comment

India-EU Wine Deal to Slash Import Duties

May 28 – India has been in discussions with the European Union for some four years concerning duties on imports of wine, currently some of the highest in the world. However the price of imported wines in India could soon be cut dramatically, with a rise in Indian domestic consumption in the cards for suppliers. In a tit-for-tat deal, allowing the European Union vastly improved access to Indian markets will also see doors open for Indian products to Europe – with a massive boost in trade prospects expected on both ends. Continue reading →

Posted in Business, FDI and Foreign Trade, Markets, Regulatory Update, Retail | Tagged India Trade, India Wine Imports, India Wine Market, India-EU Trade | 1 Comment

SEBI Regulations 2012: Broadening the Horizon for Private Equity Funds

By Sofia Liska

May 25 – The fund industry in India will soon enter the next phase of its evolution now that the Securities and Exchange Board of India (SEBI) has released the 2012 alternative investment fund (AIF) regulations, which they aligned to work with both international developments and the Indian economy.

Little will change for funds currently governed by the venture capital fund (VCF) regulations except that they will be unable to increase their targeted corpus. Of course, all new and unregistered funds will have to register under the new AIF Regulations. Continue reading →

Posted in Business, FDI and Foreign Trade, Finance, Tax and Accounting, Markets | Tagged Alternative Investment Funds, India Finance, India Investment, India Venture Capital, SEBI, Securities and Exchange Board of India, Venture Capital Funds | Leave a comment

2011-2012’s Sharp Rise in FDI and a Forecast for the Near Future

May 25 – Despite the Indian government’s somewhat closed FDI policies, the 2011-2012 financial year brought in US$46.84 billion in FDI – a sharp 34.4 percent increase from the US$34.84 billion seen in 2010-2011. However, this financial year looks less promising as there has been more negative news and less capital to go around.

“The rise in FDI equity inflows in the previous financial year, compared to the one earlier, was because of some big-ticket deals, especially in the chemical and oil & gas segments. Besides, strategic and financial investors continue to evaluate and explore opportunities in both greenfield and brownfield sectors,” Akash Gupta, executive director of regulatory services at PricewaterhouseCoopers, told the Business Standard. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade | Tagged India FDI, India Inflows, India Investment, India Outflows, Mauritius | 3 Comments

Report: India GDP Growth Expected at 6% in Q2

May 24 – Economic growth in India is expected to be around 6 percent in the second quarter according to a research report by Standard Chartered Bank.

“We expect growth to have slowed to 6 percent in Q2 from 6.1 percent in the previous quarter, thwarting initial market expectations of an improvement to 6.5 percent to 7.0 percent year on year,” the report said.

Elaborating on the reasons behind the dip in growth, the report also said that contractions in the March IIP, slower production of capital goods, and weaker consumption trends would be the key reasons behind the fall in GDP. Continue reading →