Other Briefings
India’s Economy Safe to Bank On
Oct. 13 – Banking on its strong fundamentals the Reserve bank of India's Governor has said that the country may escape the worst consequences of the global financial crisis. He however warned that exports, money, debt and credit markets might be squeezed on account of the US crisis.
"What we are witnessing today in the Indian markets is an indirect, knock-on effect of the global financial situation," RBI Governor Duvvuri Subbarao told a news conference. "We are monitoring the situation on a continuous basis and stand ready to take appropriate effective and swift action," the RBI governor Mr. Subbarao said.
Signed, Sealed and Delivered – India-U.S. Nuclear Deal Now Law
Oct. 10 – President Bush on Wednesday signed legislation that reverses three decades of U.S. policy and allows American businesses to enter India's multibillion-dollar nuclear market.
The U.S. agreement on civil nuclear cooperation permits American businesses to sell nuclear fuel, technology and reactors to India in exchange for safeguards and U.N. inspections at India's civilian — but not military — nuclear plants.
The deal will give India access to US civilian nuclear technology and fuel in return for inspections of its civilian, but not military, nuclear facilities. "India can count on reliable fuel supplies (from US) for its reactors," Bush said, adding "We will give consent to India for advanced reprocessing."
India Eases Foreign Fund Investment Rules to Woo Cash
Oct. 7 – In order to encourage foreign inflows into India, the Securities and Exchange Board of India (SEBI), India's capital market regulator lifted curbs on indirect investment notes by foreign funds to spur inflows into a battered stock market. SEBI initiated the change to stem record sales by offshore funds that have triggered a 42 percent slide in the benchmark index this year, Bloomberg reported.
A requirement forcing investors to register in India before buying shares and limits on offshore derivatives that were imposed in October will be lifted with immediate effect, C.B. Bhave, chairman of the Securities & Exchange Board of India, told reporters after a board meeting in Mumbai.
Not That Easy Doing Business in India
Oct. 6 – Sure billions of dollars in FDI are poring into India, the economy is strong and the political structure is relatively stable, but the decision by Tata Motors to pullout from Singur in India's North-Eastern West Bengal state in the wake of violent protests may affect the broader investment climate in the country, deterring foreign investors and denting economic growth, analysts say.
JP Morgan to Invest US$800 million-one billion private equity in India
Oct. 6 – At a time when banks around the world are closing, filing for bankrupcy or being acquired at all time low prices, financial services firm JP Morgan's CEO Kalpana Morparia, said JP morgan will invest $800 million-one billion as private equity investment in India over the next two years across various sectors.
In India, the firm was looking at growth opportunities, both organically and inorganically, she told the Economic Times.
"India continues to evoke interest in the global market with no decrease in global investor interest in India," Morparia added.
Rice to visit India
Oct. 1 – With the nuclear deal poised for an approval by the US Congress, Secretary of State Condoleezza Rice will visit India next month to sign the 123 bilateral agreement that will seal the landmark deal.
"We are discussing the possibility of the visit of the Secretary of State to India. We have been trying it for sometime and looking for possibility of dates," Foreign Secretary Shivshankar Menon told the Hindustan Times.
"Rice will come to India early next month. If the Congress approves the 123 pact, it will be signed during Rice's visit," an official, privy to nuclear negotiations, confirmed with the IANS.
India is Still the Second Most Preferred Destination for FDI
Sept. 25 – India has and will retain its position as the second most-preferred global destination for foreign investment until 2010, lagging only behind China, the United Nations Conference on Trade and Development (Unctad) announced in the World Investment Report 2008, released in New York.
India Will Not Be Affected By the U.S. Downturn
Sept. 24 – In a bid to avoid letting India's soaring economy slip due to the U.S. downturn, Prime Minister Manmohan Singh called for strengthening "surveillance" of multilateral institutions within India.
"We need to strengthen multilateral surveillance for free market economies to function properly. For that multilateral institutions need to be strengthened," the prime minister told the Hindustan Times on board his special aircraft enroute to the United Nations General Assmebly meeting in New York.
