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Economic Reforms |
The Industry and Commerce
Ministry has projected
exports from 63 Special
Economic Zones (SEZs)
operational since February
2006 to be about Rs. 21,631
crore (USD 5 billion) out
of an investment of Rs.
13,435 crore (USD 3
billion).<More>
Chola's Overseas Fund
(March 13, 2007)
DBS Chola Mutual Fund
plans to launch a scheme
to invest exclusively in
overseas assets to allow
investors to spread their
risks better and reduce
country risk and this fund
provides a unique
opportunity to Indian investors.<More>
Indians Buying Malaysia
Property
(March 12, 2007)
About 700 rich Indians,
businessmen, and film
stars seem to buying
property for residential
properties in Kuala Lumpur
after Malaysian Government
modification of rules
regarding foreign
ownership of property in
December 2006.<More>
Disinvestment Has
Morphed, Restarted
(February 09, 2007)
In a bid to restart
disinvestment policy
stalled by allies of the
government, Finance
Minister P. Chidambaram
said that the cabinet
has approved the offload
of a small part of its
holding in three public
sector power companies.<More>
Achieving a Sustainable
Economic Growth Rate
(February 08, 2007)
In yesterday's piece "Is
the Economic Growth
Sustainable?" we showed
that the Indian economy
has excellent
fundamentals but is also
riddled with risk. In
this article, we will
list various fixes that
are necessary to ensure
that the growth rate
continues.<More>
Singapore Distraught
About SEZ Freeze
(February 07, 2007)
The Singapore government
has demanded explanation
from the government on
the recent policy to
freeze the Special
Economic Zone (SEZ)
approvals and
notifications.<More>
Is the Economic Growth
Sustainable?
(February 07, 2007)
If economic reforms keep
pace, in the next
several years, the
Indian economy is
expected to pass Italy,
France, and the UK and
become the fifth largest
in the world spurred by
more efficient
industries competing
with the global system.<More>
Govt to Buy SBI, NABARD off
RBI
(February 06, 2007)
In a surprising move, the
government has decided to buy
India's largest bank State
Bank of India (SBI) and
National Bank for Agriculture
and Rural Development (NABARD)
from the current holders
Reserve Bank of India (RBI).<More>
Farmers to Co-Own SEZs
(February 05, 2007)
With increased
opposition from farmers
over arbitrary
allocation of farm land
for Special Economic
Zone (SEZ)
industrialization, the
federal government seems
to have evolved a
formula where the
dispossessed farmers may
co-own SEZs.<More>
Indian Economy to Surpass US
by 2050
(January 29, 2007)
A recent Goldman Sachs study
projected that India, along
with China, will surpass the
US economy by 2050 as India
has moved onto a much faster
trajectory fueled by strong
and steady manufacturing
productivity gains.<More>
“Red Tapism” Slowing Indo-UK
Trade
(January 25, 2007)
Chairman of the Indo-British
Partnership Network (IBPN)
Lord Karan Bilimoria said in
an interview with the Times of
India that although “reduced
to a great extent,” the
biggest bottleneck to further
bilateral trade is “Red tapism.”<More>
M&A Worth $8B in FDI
(January 24, 2007)
Global economists have
predicted that the “high
performance of the Indian
economy” infused by “the
improving policy environment”
is expected to accelerate
“direct investment” to USD 8
billion from USD 6.5 billion
the previous year.<More>
Stalemate on SEZ
(January 23, 2007)
The Empowered Group of
Ministers (EGoM) for Special
Economic Zones (SEZs) ended
its review meeting
“inconclusively” but said that
it is considering ways of
infusing “export obligations”
in order to differentiate
between proposals.<More>
India Bullish on Growth
(January 23, 2007)
A recent survey of 200
business houses found that
business confidence index for
October 2006-March 2007 was
higher by 2.5 points at 71.8
from the previous 6 months and
85% of the respondents
revealed plans for increased
investments.<More>
Over 200m Jobs by 2020: Brown
(January 22, 2007)
British Prime Minister in
waiting and Chancellor of the
Exchequer Gordon Brown said
that India is set to create
25% of extra jobs or an
estimated 200 million jobs by
2020 which will be more than
the numbers created in the US,
Europe, and China put
together.<More>
FDI Grows 120%
(January 22, 2007)
Commerce & Industry Minister
Kamal Nath said that Foreign
Direct Investment (FDI) inflow
surpassed all previous
projections and is expected to
grow at 120% to USD 15 billion
this fiscal year.<More>
SEZ Policy on Hold
(January 20, 2007)
Spreading protests from
farmers arbitrarily thrown out
of their land for
below-the-market payments to
create under-planned Special
Economic Zones (SEZ) has
prompted the government to
suspend this policy.<More>
FDI & FII May be Merged
(January 17, 2007)
The government is reportedly
mulling to amend the Foreign
Exchange Management Act (FEMA)
to remove theoretical
distinction between foreign
direct investment (FDI) and
foreign institutional investor
(FII). <More>
2006 Exports Topped
Expectations
(January 11, 2007)
Indian exports achieved
a key milestone when it
crossed the
psychological barrier of
USD 100 billion in 2006
with a growth rate of
24% and over 13% of
total gross domestic
product (GDP) valued at
USD 800 billion compared
to 6% in 1990-91.<More>
Problems with SEZ Policy
(January 11, 2007)
The Industry and
Commerce Ministry has
rightfully taken credit
for the creation of the
Special Economic Zones (SEZ)
Act 2005 but the policy
lacks transparency and
seems ad hoc in
implementation.<More>
RBI Rate-Based Navigation
(January 04, 2007)
While the economy was in full
throttle last year, increasing
concerns on excess liquidity and
inflation saw the Reserve Bank of
India (RBI) trying to steer the
economy to sustainable levels
through a process of rate hikes.<More>
Energy Concerns &
Alternatives
(December 25, 2006)
As India’s economy grows at a
breathtaking 9.1% its hunger
for energy to sustain this
growth is higher and though
per capita energy consumption
is relatively low, its energy
use is expected to surpass
Russia and Japan to be the
third largest consumer of
energy by 2030.<More>
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Govt to Divest from Maruti
(December 23, 2006)
After 25 years of partnership with
Japanese Suzuki Motors through
Maruti Industries, the Government
has decided to sell its remnant
10.27% stake for an estimated Rs.
2,700 crore (USD 586 million) to
overcome budget deficits.<More>
Sustainable 9% GDP Growth
(December 21, 2006)
Led by strong manufacturing growth,
the economy grew at a robust 9.1% in
the first half of fiscal year with
exports clocking 34.9% prompting the
government to claim that the growth
pattern “reflected the ability of
Indian manufacturers to meet
international standards.”<More>
Mining Policy to Attract
FDI
(December 13, 2006)
A new mining policy is being
formalized aiming to attract
more foreign direct investment
(FDI) through joint ventures
which is now only USD 150
million and the new target
investment value is Rs.
100,000 crore (USD 22.22
billion) in the next 2 years.<More>
China’s Threatening
Maritime Plans
(December 08, 2006)
Naval Chief Admiral Sureesh
Mehta warned that China’s
maritime plans, co-opting
neighboring nations including
Myanmar, Pakistan, Sri Lanka
and Eastern African nations,
could be used against India in
the future.<More>
Mauritius Tax Treaty in
Trouble
(December 06, 2006)
The Indo-Mauritius
comprehensive economic
cooperation and partnership
agreement (CECPA) bilateral
treaty covering investment and
trade in goods and services
has hit a hurdle with New
Delhi demanding disclosure of
cover-up companies hiding
identities.<More>
Govt Promises Economic
Reforms
(November 28, 2006)
India is planning to allow
foreign direct investment (FDI)
in the healthcare and
education sectors, continue
with reforms in the financial
sector, and dilute government
equity in public sector
enterprises through the
Initial Public Sector Offering
(IPO) route.<More>
Railways Profits Up
(November 24, 2006)
The largest railways in the
world, the Indian Railways,
reported earnings in November
at Rs. 1706 crore (USD 370
million) and an increase of
22% from last year due to
better freight and passenger
capacity utilization.<More>
India Most Favored Investment Destination
(November 16, 2006)
A Bank of America (BoA) study found that the
average inflow into Indian bonds, equities,
and loan vehicles increased 158.4% more than
thrice the emerging world average of 40.3%
as corporate investments was pegged at USD
19.3 billion in 2005.<More>
China Pushing FTA
(November 08, 2006)
An important component in Chinese
President Hu Jintao’s visit will be
a push India to grant it a “market
economy” status through a free trade
agreement (FTA), something that most
developed economies have so far
refused.<More>
India 3rd Largest Investor in
Belgium
(November 08, 2006)
Making a strong pitch for Indian
investments in Belgium, visiting
Prime Minister Guy Verhofstadt said
that his country has fought red tape
and liberalized tax and labor laws
and is becoming a “magnet” for
investments making India is the 3rd
largest investor.<More>
Disinvestment Not for Judicial
Review
(November 02, 2006)
Removing a major obstacle to
disinvestment, the Supreme
Court (SC) threw out a case
filed by a labor union
challenging the sale of a
Government-owned hotel citing
a Disinvestment Commission
(DC) report recommending the
sale of this non-core asset.<More> >
Y-on-Y Industrial Growth
Higher
(October 13, 2006)
An upsurge in manufacturing
took cumulative industrial
production from April-August
to 10.6 compared to 8.7 last
year and August saw a 9.7%
rise compared to 7.6% but
lower than July’s growth of
12.7% but analysts say that
consumer demand has not
slacked.<More>
India , Britain Share Terror Concerns
(October 12, 2006)
Visiting Britain right after the North
Korean (NK) nuclear test, Prime Minister
Manmohan Singh and British Prime Minister
Tony Blair concluded their third annual
summit and discussed terrorism, energy
cooperation, and investment promotion.<More>
Macro Indicators Strong, Agri
Worrisome
(October 11, 2006)
Although economic growth is at
7.5%-8%, inflation in check at
5%-5.5%, investments in Telecom & IT
estimated at USD 16 billion, and
more reforms on financial and retail
sector in the offing, the Indian
economy continues to roar but
Agriculture continues to be a major
worry.<More>>
31 New SEZ
(October 03, 2006)
Despite intense opposition and
public debate over Special Economic
Zones (SEZs) policy, the Board of
Approvals (BoA) cleared 31 proposals
including the South Korean Posco’s
proposal for a Rs. 55,000 crore (USD
12 billion) steel project.<More>
Commies Blocking Labor Reforms
(September 27, 2006)
Often portrayed as a capitalist
communist of the modern Chinese
variety, West Bengal Chief Minister
Buddhadev Bhattacharjee conceded
that “globalization is inescapable”
but told Industry representatives
that major labor reforms are
unnecessary.<More>
OECD Asks India to Overhaul
Regulations
(September 20, 2006)
An influential international body
advised India to overhaul its
outdated business regulations such
as reservations for small firms,
tariff structures, and labor laws
for large companies to derive
benefits from global economy such as
investments and technology.<More>
India , China Asian Economic Growth
Engines
(September 19, 2006)
The International Monetary Fund (IMF)
projected India ’s Gross Domestic
Product (GDP) growth at 8.3% this
year and 7.3% in 2007 but but
cautioned financial managers on
inflation due to oil prices and
strong domestic demand and budget
deficit.<More>
US Says Reforms Stalled, Growth Up
(September 15, 2006)
The US Ambassador to India David
Mulford voiced concerns of the
investment community that the
coalition politics has caused a “a
pause in the reform process” and
warned of “serious economic costs to
any loss of momentum on the reform
front.”<More>
IMF Asks for Financial Reform
(September 08, 2006)
Visiting International Monetary Fund
(IMF) Managing Director Rodrigo de
Rato said that “There is a need to
make the financial system more
efficient” and the “structural
reforms” is required for India “more
capable of benefiting from world
economy.”<More>
Govt Proposes MNC Audit
(September, 06 2006)
A senior Finance Ministry
official said that India is
thinking of starting joint
audits for multi-nationals (MNCs)
operating in India and the
ASEAN region to ensure that
the balance sheets match those
of their annual statements.<More>
Economic Growth Promising, SEZ Model
Questioned
(September, 05 2006)
In a positive sign, the Reserve Bank
of India (RBI) said that “growth
momentum of recent years is likely
to continue during the year” but
cautioned on the Special Economic
Zones (SEZ) as a model for
developing industries and generating
jobs.<More>
Corp Expansion despite
Stalled Reforms
(August 24, 2006)
Despite a stalled
disinvestment process and
halt to reforms, several
positive factors in the
Indian economy, perhaps not
to the optimal level, have
emerged encouraging targeted
overseas mergers and
acquisitions (M&A) by many
Indian companies.<More>
Govt Plans to Sell Residual
Maruti Interest
(August 22, 2006)
Faced with increasingly
recalcitrant and belligerent
opposition from communist
allies to disinvestment
plans, the Government is
apparently proposing to sell
all its residual 10.24%
stake in Maruti Udyog
Limited (MUL) to net Rs.
2500 crore (USD 543
million).<More>
Subsidy Cuts on the Cards
(August 17, 2006)
Facing unending global fuel
price increases and
increasingly exposed to
global economy, Prime
Minister Manmohan Singh
reminded the nation that
Government cannot on
indefinitely subsidize
consumption as there were
limits to budgets.<More>
Forbes Calls “India is next
Great Bull Market”
(August 09, 2006)
Confirming other expert
opinion, Forbes magazine
says that “India has strong
potential to be the next
great bull market of the
21st century” clearly
outpacing China as a better
investment opportunity.<More>
Indian Companies Make Large Global
Buys
(July 12, 2006)
The unprecedented growth of Indian
economy is spurring Indian companies
to scale their operations to inorganic
overseas acquisitions with some of
them larger than the Indian
operation.<More>
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